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Thanks for the explanation. Does the same math apply for founders (just with a higher % to start), or is it calculated differently?

• boomzilla 12y ago
  In theory, founders get commons too, so same math applies (with higher %). In practice, sometime founders get themselves better deals, e.g.: http://allthingsd.com/20111001/vcs-unite-chamath-palihapitiya-decries-airbnbs-recent-112m-funding-for-excessive-founder-control-and-cashout-in-email/ http://allthingsd.com/20111001/vcs-unite-chamath-palihapitiy... There is also some tax workaround that leaves founders much better off: usually their payout are only taxed as long term financial gains, which is a much lower bracket.