Re:“Startup” asks internship applicant to build their app be...
by pjc50 on Thursday October 26, 2017 @11:09AM
(#15559506)
Answering the edit: you have to value their equity somehow.
Two people taking on a third after 6 months would probably not split out 1/3 to the new person, but it should almost certainly be more than 10% and on the same voting terms as all the other equity.
Don't forget that this now gives them a say in further dilution when you want to take on a fourth or fifth, or carve out an option pool etc.
(I've been the "first non cofounder employee" at a startup, but they paid me properly from day 1 with actual money, as well as options on a normal vesting schedule)
Two people taking on a third after 6 months would probably not split out 1/3 to the new person, but it should almost certainly be more than 10% and on the same voting terms as all the other equity.
Don't forget that this now gives them a say in further dilution when you want to take on a fourth or fifth, or carve out an option pool etc.
(I've been the "first non cofounder employee" at a startup, but they paid me properly from day 1 with actual money, as well as options on a normal vesting schedule)