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Operations

Equity Structuring

Fair equity allocation principles for founders and early team members.

TL;DR

Fair equity allocation principles that align incentives and reward contribution for founders and early team members.

Steps

  1. 1Determine total equity pool size
  2. 2Allocate founder equity based on contribution
  3. 3Set aside employee option pool
  4. 4Define vesting schedules
  5. 5Document terms in equity agreements
  6. 6Plan for future rounds and dilution

Templates

Resources and templates for this playbook

  • Equity Allocation Worksheet
  • Vesting Schedule Template
  • Equity Agreement Checklist