What percentage should a CTO get?
A paid non-founding CTO typically gets 2-5\%. Factors weighing for a higher equity grant are: the salary is more than a little under scale.
How much equity should I give up in a friend and family round?
Since a typical pre-money valuation for angels would be between $1 and $3 million, in general the maximum pre-money valuation from friends and family should be between $250,000 to $1 million. A typical amount to raise from friends and family is $25,000 to $150,000.
How much equity should a VP get in a startup?
0.5\% to 3\% is typical for an experienced VP of product management after a Series A funding round. However, it also depends on what you’re paying your VP. If you’re giving them a full salary, allocating less equity would be perfectly okay. Most startups cannot afford to give much salary, so they compensate with equity.
How much employee equity should you offer your startup’s developers?
Leo Polovets of Susa Ventures suggests offering between 1\% and 2\% for a lead developer, based on data from Silicon Valley early-stage startups. Fred Wilson of Union Square ventures has posted an entire free, online class where he goes into great detail about structuring employee equity, which is definitely worth watching. What about advisors?
Should founders be paid a salary or stock options?
Even though this person (or people) will be paid a salary, all of the same benefits of equity compensation—including both rewards and incentives—apply to them as well. But rather than granting them Common Stock (often called Founders’ Stock), industry best practice is to grant their equity in the form of stock options.
Should you offer contractors equity in Your Startup?
The graph below shows the relative percentage of equity holdings before, during, and after the investment. If you hire contractors in the early stages of your startup, you might be tempted to offer them equity in exchange for their services. While this sounds good because it can save you cash, it can actually be problematic.
How many shares should I give myself as a Startup Owner?
The most important of those numbers is not the authorized amount, which will typically be 10 million shares for a high-growth startup, but rather the number of shares actually issued. If, for example, you grant yourself only 1,000 shares, but that’s the only grant, then you will own 100\% of the company.