"There is no universal ‘standard’ split, as each startup's circumstances are unique. While equal splits (50-50 for two founders, or 33-33-33 for three) are common, the most effective splits reflect each founder's relative contributions, experience, and future commitments. Consider factors such as who originated the idea, who brings key technical or business expertise, and who will be working full-time versus part-time."

"An agreement between co-founders is crucial as it clarifies roles, responsibilities, equity splits, and decision-making processes, preventing conflicts and ensuring alignment."

"At formation, startups typically authorize 10,000,000 shares of common stock in their certificates of incorporation."

"At formation, startups typically authorize 10,000,000 shares of common stock in their certificates of incorporation… Founders: Approximately 8,000,000 shares distributed among the founders according to their agreed upon ownership… Company Stock Plan: Approximately 1,000,000 shares reserved in a company stock plan… Unissued: Approximately 1,000,000 shares are left unissued and available for future use."

"10 million to 15 million is typical… Total Authorized Shares: 15,000,000 shares of common stock; Issued to Founder 1: 4,700,000 shares (47 percent fully diluted); Issued to Founder 2: 3,700,000 shares (37 percent fully diluted)… Reserved for Equity Incentive Plan: 1,000,000 shares (10 percent fully diluted)."

"Dilution modeling is the process of forecasting how your ownership percentage will change as your startup raises funding and issues new shares… New Ownership % = Old Ownership % × (1 - Investment %)… You own 40%. Investor gets 25% (Series A). New % = 40% × (1 - 25%) = 40% × 75% = 30%."

"The company will elect to exercise the remaining portion of its repurchase right against any unvested shares the departing founder has purchased… The amount paid to repurchase shares or options is not the current value but the price originally paid for the shares."

"This is a class of preferred stock that can be sold to investors in a preferred stock round so long as the investors agree… The founder gets paid for the FF preferred being sold at the price prevailing for the preferred stock being sold in the round; the founder reports the transaction as a sale of preferred stock and claims capital gains treatment on the sale."

"Founders: Approximately 8,000,000 shares distributed among the founders according to their agreed upon ownership."

"Authorized Shares: The maximum number of shares a company can legally issue, as stated in its corporate charter… Issued Shares: the total number of shares a company has created and sold to investors… Outstanding Shares: the number of issued shares currently held by shareholders, excluding any shares the company has repurchased."

"Under the normal IRS rule, when you get restricted stock, and it's subject to vesting, the IRS will say, 'OK, fine, no tax today, but we're going to tax you when it vests on the value of the stock at the time it vests.'… If the company has just been formed and the stock has hardly any value, it's generally worth filing an 83(b) election, because, even if things don't go well, you don't have a lot to lose."

"Par value in most states, including Delaware, is a relic of their corporate statutes that typically comes into play in calculating franchise taxes — it is the minimum issue price for a share of stock… A typical par value is $0.00001."

"[Acceleration based on] one event… is called a single trigger… Under other plans, a combination of events may be required for an acceleration of vesting to occur, such as the combination of a demotion or termination without cause and a merger. That is called a double trigger."

"Vesting is a restriction placed on equity that requires the holder of that equity to 'earn' the equity over time by providing service to the company. Specifically, when shares are subject to vesting, the shares are granted under a contract that gives the company the right to repurchase the shares at the price paid by such holder (usually nominal value) if such holder stops performing services for the company. The number of shares subject to the repurchase right decreases over time (or, less commonly, upon the achievement of certain milestones), until none of the shares are subject to the repurchase right, and the holder can keep the shares if they stop performing services to the company. Put differently, the shares 'vest' – or become free of the repurchase right – in accordance with the 'vesting schedule' established in the applicable contract. Note that some founder vesting agreements may permit the company to repurchase a founder's shares even after the shares have fully vested if the founder is fired 'for cause' or the founder violates a non-competition agreement."