Questions

We are in the common stock series. At the moment I have been investing 32 hours a week in the startup for the past 4 months without receiving salary. I handle marketing, communications, PR and sales. The equity pool reserved for first employees is 40%. There are around 20 people working at the startup, from which maybe 6-8 invest the same or a bit more time as me. The two founders included. Thanks for your help.

1. Figure out what equity you would have wanted if the company already had raised a round
2. Adjust for anticipated dilution of the Series A round.
3. Then, either double or triple that adjusted number to account for pre-funding risk, depending on how far along you are in the bootstrapped phase.

If the company does not intend on raising capital then skip 2.

I would say you should be in 3%-6% range if you are working strictly on equity. The norm is a 4 year vest with 1 year cliff.

You can shoot me message and we can discuss.


Answered 10 years ago

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