Equity for 3rd member
Hey, long story short, i have been offered a position as number 3 in a startup that raised a seed of 200k and got accepted to techstars accelerator, the position is to develop the product together with the CTO and lead the development when hopefully it grows, My value is based on multiple project and products i developed from scratch as a team lead and director of development teams (current position), how much would you say is a fair allocation?
My personal opinion is 7-15%
Hey, I don't believe I have as much experience as you do, however, this is what my mentor says the questions to ask are:
Take the average of those 2 numbers as a starting point. 👍
Hey Pavlo,
Your mentor is correct =) but there are still some guide lines which i found after talking to some founders by doing some connection pulling
The usual route is to:
1)set an option pool of 10-20%
2)divide the left over % between the founders
So joining as any number which is not a founder should come out of the option pool
If you allocated 10% for the option pool typically first 10 employees aggregated options get the first 5% and employee 11 - X get the other 5%
This is without taking into account dilation from investing rounds
hope this sheds some light =)
Hey, yes that makes sense. Thanks for explaining this 👍It's a bit more structured way to think about it. Being an engineer, I like structure 🤓