Question
One of the founders should get 10% of the startup company on the formation stage. There are 10,000,000 authorized shares. How many shares this founder will get in case if the founders decided to allocate only 8,000,000 for founders and the rest for stock plan 10% and future investor 10%?
Answer
To calculate percentage ownership, take the number of shares you were offered, divide it by the total number of fully diluted shares outstanding. How to allocate share in a start-up: 1. Determine the Founder Equity
2. Vesting Schedules
3. Divide the Equity
