Compensation · Cap table

What is a typical share allocation for the first employees or consultant working part-time?

Maria Brandt

July 21st, 2014

I am at the stage of product validation for my idea (building an MVP: website for consumer market). I am currently a sole founder, so I haven't completed a cap table for my company's shares.  Great news, is that a recent graduate wants to work part-time with me in the idea, but not as a founder.  Therefore, she would be first consultant or employee.  What is the typical share allocation for the first employees or consultants, specially working part-time in marketing development?  Would appreciate any feedback in this area.

Dimitry Rotstein Founder at Miranor

July 21st, 2014

Typically, around 1%, but given such an early stage start-up, it can be more than that, maybe even 2%. In any case that's in addition to the salary.

Mike Moyer

July 21st, 2014

Check out SlicingPie.com for detailed instructions on creating a perfectly fair equity split. It will tell you how to allocate equity and how to recover equity if needed. It uses a dynamic equity split model.