3 ms·
I believe so. First-time founders look to their investors for advice. For example, many VC firms have guidance on salary and equity ranges for hires based on wh
by boulos 7y ago
I believe so. First-time founders look to their investors for advice. For example, many VC firms have guidance on salary and equity ranges for hires based on where the company is (Series A, B, C, etc.). All the numbers are quite low.
There's a straightforward argument: both founders and the investors really want the founders to have as much equity as possible to keep them engaged / dedicated / whatever. The founders out of personal interest ("I own 30% of this!") and the investors because it's perceived (perhaps correctly) that the moment the founder(s) pull back, the company is doomed.
There's definitely a non-trivial premium that founders deserve, both for the increased work / pressure and reputational risk. But is it 10x greater? 100x? Many new hires get .25% in equity even early on, while a founder is unlikely to have less than 25% even post-Series-A financing unless there are several co-founders.