Splitting and Granting Equity: How Many Options to Give to All the Peoples

This is one of the most complicated problems that every new founder has. Finding a co-founder, getting the split right, and then hiring employees and getting option grants sized correctly. I’ve written a number of posts on the topic, including the primary post that has a full-feature excel model pre-populated with all the standard roles and numbers. This will save you valuable time and give you a critical starting point -- just take a look.

Post one covers how to split with your co-founder. Here I’m focusing on how to think about who does what, the partnership, and long term issues that always seem to come up. This is your first hard decision, you need to get it right. And don’t forget about VESTING. One more time:  include vesting!

See the post here: https://joshmelick8.medium.com/splitting-equity-with-your-co-founder-637aaf0ed97c

Post two is where we get functional. This is the primary model I used for hiring over 250 people and granting over 500 options grants over 5 years. This model is based on Fred Wilson's old but seminal post on the topic from 2011. However, mine is updated, includes an excel tool, and is a real model and not just a guideline. It’s all turnkey. You should do your own research so you understand the topic, but no need to reinvent the wheel! Start here.

See the post here: https://joshmelick8.medium.com/a-formula-for-sizing-employee-option-grants-how-much-equity-to-give-23c3618bba53

I’m not done yet, though - there’s a lot to cover here. Next on my list is to write up more FAQs, cover more on advisors, consultants, board members, and the like -- as they all usually get options as well. I like to see those grants reconcile with those of full time employees though -- so make sure you keep reading.

See the post here - will update when done!

What else did I miss? Have more questions? I’m on Quora and often answer related questions there. See here and here!