Equity framework for founding team #85
Description
Structure the founding team equity allocation.
Decisions Needed
Founder Split
- Solo founder keeping X% for co-founders to split?
- Or negotiating individually?
- Standard: 2 co-founders = 40/30/30 or 50/25/25
Vesting
- Standard 4-year vest with 1-year cliff
- Acceleration on acquisition?
Advisor Pool
- Typically 2-5% reserved
- Individual grants: 0.25-1% depending on involvement
Employee Option Pool
- Typically 10-15% reserved for future hires
- Created at incorporation or first funding
Deliverable
- Term sheet template for co-founder conversations
- Cap table sketch
Required for Level 1: Co-founder Ready