If you are starting a startup, outside of founders, how do you usually distribute equity ? Do you create like a 10% pool and allocate to say first 5-10 employees ? I may be asking this incorrectly but this stuff is a bit new to me being a bootstrapped founder so far. Any resources or guides is well appreciated.
👤 sn0w_crash Accepted Answer ✓
Founder stock is separate from the employee pool.
Get your lawyer to draft up a founder stock purchase agreement as part of your incorporation.
Everyone after that point will be an employee, and their equity will come out of the 10% option pool.