Questions

One of the founders should get 10% of the startup company on the formation stage. There are 10,000,000 authorized shares. How many shares this founder will get in case if the founders decided to allocate only 8,000,000 for founders and the rest for stock plan 10% and future investor 10%? 

The question to answer is whether the founder will receive 10% of the current company, or 10% of the total=, potentially diluted company. Typically it is the former. Since stock plan pool and investor pool are currently holding place and have no shares, the Founder should receive 800,000 shares or 10% of the shares outstanding. Issuances from the other pools will be dilutive to them.

On the other hand, how many founders are there? 10? Unless there is a VERY strong argument for something else, I generally recommend that Founders receive equal amounts of ownership.


Answered 3 years ago

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