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by kasey_junk
4309 days ago
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Well depending on the legal setup, the company has 100% of it's equity on day 1. Founders and employees both are given options to buy said equity. That ratio is not setup with the expectation that the founders will have 60-85% of the equity in the future. |
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In a typical startup, the ratio of equity between founder and employee #1 might be 50:1 or even much more. I am always surprised that people sign up to be employees given how fast equity grants drop for every subsequent hire. And, I wonder if any company has tried more gradual equity drop-offs. For example, where the ratio between founder and early employee grants is < 2:1, for example.