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Ask HN: How to offer equity to founding team members?
If you are starting a startup, outside of founders, how do you usually distribute equity ? Do you create like a 10% pool and allocate to say first 5-10 employees ? I may be asking this incorrectly but this stuff is a bit new to me being a bootstrapped founder so far. Any resources or guides is well appreciated.
- sn0w_crash 4y agoFounder stock is separate from the employee pool. Get your lawyer to draft up a founder stock purchase agreement as part of your incorporation. Everyone after that point will be an employee, and their equity will come out of the 10% option pool.
- codegeek 4y agoThanks. Any recommended resources to read/learn more about the 10% option pool ?
- sn0w_crash 4y agoIt’s generally common practice. You can get away with 5% if you’re only hiring a couple of people. The Unusual Ventures field guide covers alot of this: https://www.unusual.vc/field-guide https://www.unusual.vc/field-guide
- rohitpaulk 4y agoThe Clerky handbook is a good resource: https://handbook.clerky.com/formation/equity-allocation https://handbook.clerky.com/formation/equity-allocation.