Ask HN: What is a good equity split in my case

Re:Ask HN: What is a good equity split in my case by uberman on Tuesday March 02, 2021 @09:07PM (#26323836)

What do Carl and Dan have at risk? It looks like the first two who have 40k of their own money at risk should have the lion's share.

My best guess is 50 35 10 5. Maybe 51 41 4 4. Something in that range.

It could be radically different though is we knew more about what each person had at risk. For example, are any taking less or no salary?

[ Parent | on HN ]

Re:Ask HN: What is a good equity split in my case by _pygv on Wednesday March 03, 2021 @08:26AM (#26327973)

So far, no one took salary. Everyone would start having similar salaries at the same time

[ Parent | on HN ]

Re:Ask HN: What is a good equity split in my case by uberman on Wednesday March 03, 2021 @08:58AM (#26328331)

Since no one has taken a salary (even though forgone salary is not really something at risk) I believe it would merit factoring it in.

I would say: 57 37 5 1 potentially seems appropriate to me.

A and B having real money at risk get the lion's share and everyone gets some credit proportional to the time they have volunteered to get the thing going.

While it is all still on paper, you might also want to work out who's pot future stock incentives come out of. Is it A only or A and B equally or proportionately? Alternatively, do you carve out a block now for such purposes perhaps based on all 4 contributing proportionately to the block.

[ Parent | on HN ]

Re:Ask HN: What is a good equity split in my case by _pygv on Wednesday March 03, 2021 @10:48AM (#26329918)

Thank for you opinion. Factoring in the fact that Dan is quitting his current job at a big FANG with total comp in the 400-500k range (this creates a higher equity cost for him). Most of us used to be software engineers, but with nowhere near that kind of comp. How much this consideration would that impact the equity?

[ Parent | on HN ]