Engineering Your Start Up
after expansion financing done, stock should be roughly 60% investors, 20% founder, 20% founding team and other employees
- of that last 20%, there's often a factor-of-10 in portions based on level - e.g. the C Level folks each get 10x what the managers get, who get 10x what any staff get.
|Tier||Num people||Shares /person ratio||Shares /tier portions||Total portion /tier||Total portion /person|
I can't swear that's what he had in mind, because he doesn't seem terribly precise/consistent across various parts of the book in distinguishing key founder from CEO from founding team from top-mgmt from middle-management (and I'm not sure how much middle-management there should even be at the VC stage). So my interpretation is that there's a single key founder who is also CEO - he gets the separate 20%; then all the other employees, including founding team, split the other 20%.