Pre-Money Valuation Calculation. But why is it necessary to get a valuation done periodically?The term “founders’ equity” is no different than any other equity; it refers to the equity that founders own or the equity that is given out at the formation stage of the company. When your startup is in the initial stages, the founder or the co-founders usually own it entirely, typically in a 50/50 split, or 60/40, depending on various conditions. For purposes of investing money into your own company, you can use the same financing vehicle. by. There are multiple methods to calculate your equity ratio. Co-working space credits (WeWork or something similar), Commuter stipend or Lyft/Uber credits, Continuing education stipend (as it aligns with work needs), Weekly or monthly “team days” or social outings, Matching 401K (larger startups). Previously Brad Feld has argued that a founder CEO will be in the 5-20% range, a founder CTO in the 2-10% range, other co-founders between 3-7% and non-founder. That said, it’s unlikely in most cases for non-founders to receive more than 5% of the business (bringing on a CTO can be the one common example of exceeding this mark). Look at your historical growth curve to calculate monthly, or better yet, your weekly revenue growth rate. That said, it’s unlikely in most cases for non-founders to receive more than 5% of the business (bringing on a CTO can be the one common example of exceeding this mark). Equity capital is the capital/finance that a business raises from investors in exchange for equity or stock (in this context, equity capital can be an alternative to debt capital). termination – Amicable departures are generally easier than terminations. In 2023, the average startup founder’s salary will be around $148,000 per year. To use the Startup Cost Calculator: 1. Use these resources to figure it out. 2%. (according to Kruze Consulting) As a startup founder, you have many complex decisions to make—the trickiest one may be how to determine your salary. Provide tech-based strategies going forward to help expand and develop your business. 50/50 or 20/20/60). Ashton Kutcher and investment partner, Guy Oseary, invested $500,000 in Airbnb’s Series C round for an estimated . Here’s a super simple example: We each own 50% of the company. Legal contracts can be costly and time-consuming, especially for busy startup founders. In the beginning, founders are the sole owners of their start-up. Take advantage of our free startup valuation calculator by answering the following 25 questions, and we’ll calculate an approximate valuation range. 4. 2. The calculus is different if the CEO or COO/President was a Founder: Founder CEOs retained on average 33% ownership in their companies (median = 25%), while Founder COOs/Presidents retained ~14%. Then add up the numbers for each founder, sum those totals, and calculate the percentages. Our free startup equity calculator can help you understand the potential financial outcome of your offer. Weight. Equity boundaries at different stages. com. Down Round Protection. As with all strategic business decisions, there are several factors to consider when awarding equity to employees. In this case, the first founder would own 40% of the company, while the second would own 25% (2 million / 10 million x 100% and 1. The simplest and quickest way to calculate startup equity is by having each founder. How much do startup founders make after exit? The median and average paydays were $268mm and $708mm respectively. Of course, these percentages will change with each round of fundraising, further diluting the equity of the founders. Dilution also reduces a company's earnings per share (EPS), which can negatively impact share prices in the market. In this guide we go through important questions about startup equity for founders, employees and investors, including cap table management, splitting equity with your co-founders, common and preferred share classes, vesting schedules and employee equity compensation. This article delves into liquidity preferences in startups,. The company contribution is rarely exactly 50/50 and the equity split should be based on a variety of factors, including those discussed above. Your founders’ agreement will be unique to your business, but all founders’ agreements should cover some basics. SeedCamp’s hackathon, Seedhack, took place at Google Campus, London, on the 8th to 10th of November. By taking this course and utilizing my easy-to-use Startup Equity Calculator (UPDATED to handle up to 7 cofounder slots–more than what 99. Learn to use a simple framework and my robust calculator to help you and your cofounders to find a fair equity split. Preferred stock and common stock (alternatively preferred and common shares) are two classes of equity typically issued by startups as a security representing ownership in a company. At each round, a new investor will ask for 10-25% of equity (dilution), and a top-up of employee share options (ESOPs) Round size increases by ~5x between each financing round. Start-up Founders. 3. The problem for other investors (especially founders) is that the lower the cap, the better for the investor. For example, a COO could receive a $110,000 base salary, a 20 to 30% bonus for hitting specific milestones, and some equity. 1. A great tool to evaluate the anticipated contributions of your founding team is the Co-founder Equity Calculator. This time, the 20% option pool is carved out from the post-money valuation, meaning everybody gets diluted by 20%. A cliff period means that during that period, no shares are owned by the person. 50 after one year and $0. The Startup Cost Calculator can help you get an estimate of your startup's total expenses. 3:07min. Have traction? This next set of calculators helps you determine the. Making 83 (b) is a better option in this case. Many of them are experienced entrepreneurs with. The average COO of a startup gets paid anywhere from $140K to $200K plus equity and bonuses. Equity Distribution: Instead of splitting equity equally among co-founders, distribution should be based on the allocation of responsibilities and expected contributions, reflecting the differing levels of commitment, skills, and value each founder brings to the startup. The simplest way for founders to launch and run a startup:1. 5% to 2% stake for a key employee at the executive level. Equity Calculator for Equity in Start-up Companies. TLDR Stock Options was built to help employees and advisors understand the high-level potential value of stock options at a company's exit and to more fully learn about the factors that will affect their equity's value over time. Be very suspicious of yes-men: they find everything you say great, and think all your ideas are awesome…. she owns 63% of the startup's equity. 100X. As a result, the founders’ stake in the company is reduced; they can calculate equity dilution by taking the pre-money valuation and accounting for the equity they sold for the new capital. This startup equity calculator can be used to help estimate the amount of equity each founder and investor receives. The basic formula is simple: if you need to raise $3 million, and investors believes the company is worth $10 million, you will have to give them 30% of. Regardless of your capital at launch, 10 million authorized shares is generally the sweet spot for a new startup company and the number of shares that most corporate law firms would recommend to. If a CEO does not exist at the time of company formation, keep some equity reserved for the role in the future. The median level of founder ownership shown is 15% while the average is 20%. At the beginning of a startup journey, founders own the full number of the startup's issued shares, with each. “Equity ownership is not only important for aligning incentives between founders and investors, but crucially it drives alignment across the entire organisation. Typically, a founder starts out owning 100% of a company and, every time capital is raised or shares are issued, that ownership stake is reduced. Startup declines – Assume the company isn’t doing well and shares are worth $0. VC to calculate how your round shapes up and how your dilution. How to calculate start-up equity? The start-ups need to decide how will the equity be divided among the different groups (co-founders. Make better decisions, faster with an AI decision engine!The legal remedy was sought following recent controversial posts by Grover on social media. 1. For example, let’s say a pre-seed startup has a pre-money valuation of $500,000, and the founders own 80% of the company. A third popular arrangement is when one founder, which Bahat calls a senior controlling partner, has slightly more equity than the rest. So 500,000/5,500,000 = a 9% equity percentage. This topic is widely written about, but modern wisdom is that even splits are not ideal and that co-founders should divide equity according to the value they’ll create for the startup. You and your co-founders can answer a series of questions and get an unbiased estimate for how to break up ownership. The initial allocation of this equity will be broken down into three groups: Founders will be allocated 8,000,000. Considering the Founder’s Pie Calculator, some key things to consider when dividing equity in a startup include who has the: initial idea for the company;Conventionally, the general guiding principle for a startup is that when giving equity to investors in exchange for their money in your startup, the equity should be somewhere between 10-20% of total equity. Equity is usually divided among founders, investors, employees and advisors. You should always avoid offering over 25% during this stage. Because convertible notes are debt, if a startup fails to raise a Series A, they may have to pay that money back to the investor. Startup financial advisor David Ehrenberg suggests that 5 to 10 percent is a fair equity stake for CEOs who join the company later. 8. You can use this sheet to calculate your own values by replacing the numbers in the Absolute Scores table. Create your cap table for free. Dynamic split is a fair way to assert equity based on each individual’s contribution relative to the team. see all features Distribute equity to advisors, co-founders, and. Most of the university spinouts in our dataset had three or more Founding PIs involved at formation. The value of shares issued by a startup (or other company). Taxes paid at sale (20% LT capital gains & 35% ST capital gains tax rates) $200,000. Agile funding: Break out of the funding round cycle. They're the people who contribute their time and expertise to startups — time and expertise that's absolutely invaluable to a company's growth as founders often wear a million different hats and learn on the go. You can change any of the values below, and this will auto-update all other inputs. As your company grows, and the chances of success and stability increases, then founders can increase their salary compensation over that period. Equal ownership equity splits are determined by dividing 100% of the equity shares by the number of co-founders involved in the start-up. See the "Getting a Job at a Startup" chapter in Part III, Teams for more info. You input all the terms for your convertible note investors in this ledger. • Startup founders • Co-founders • Entrepreneurs So, you have a great business idea. Airbnb is currently valued at $30 billion, as of August 2016, making Kutcher and Oseary’s shares currently worth an estimated $75 million, assuming no share. Early Stage Advice: Founders often make mistakes when figuring out equity for each co-founder. After the financing is complete, the ownership of the investors is expected to amount to 20% of the total equity. The Startup Calculator can help co-founders understand the ultimate financial outcome for. Early Stage Advice: Founders often make mistakes when figuring out equity for each co-founder. This first portion is known as the cliff. 25 and 1 percent equity in the business. The working of a typical startup equity calculator takes place depending upon the following few factors: Considering the last. In total, there are now 13,000 shares of company stock (on a fully diluted basis)—and just like that, you now own only 77% of your company (10,000/13,000) instead of 100%. The calculator can be used to. The global SaaS platform for founding, operating, and investing in scalable, high growth companies. On day one, founders own 100%. Putting it all. At the beginning of a startup journey, founders own the full number of the startup's issued shares, with each. The “business guru” who brings commercial and industry knowledge to. Our startup equity calculator is designed to help quantify each of a startup’s co-founders’ contributions in order to more accurately split equity in the company so you can prevent. Step 3—Dividing equity among Investors. Add your. Option pool: 20 percent, which can be divided up among employees. 067% of the startup, which you can use to buy equity in your startup by paying. Navigate to the “Calculator” tab in order to input your company’s data. Financial Technology firm for $100K salary and 1. Limit the stock option pool. Our equity split calculator makes it easy. VP Data & Analytics Seismic Software Follow. In this guide, we talk about the fundamentals of startup equity distribution: What is startup equity; Who gets equity in a startup; Factors to consider. Therefore you should continue to. If there are multiple founders this percentage will be split among them according to the contribution they make (e. Look, starting a new venture is hard, but having to figure out what is fair for each cofounder shouldn't be. The average founder/CEO holds roughly 14 percent equity at the company's IPO, while an outside CEO holds an average of 6 to 8 percent. Founders Benefits: A fair distribution of stock amongst inventors encourages them to continue to be dedicated and active in the. Each co-founder needs to go to Startup Equity Calculator. As CEO, Steve Jobs received 45%, as did Steve Wozniak, the programmer of the. For 2023, the average startup CEO salary decreased by 5. “Equity ownership is not only important for aligning incentives between founders and investors, but crucially it drives alignment across the entire organisation. Decide what their total compensation should be. The effect of ESOP on ownership? Use the startup dilution calculator to understand impact of ESOP & VC on founders. Equity Capital. Your startup will certainly vary on these additional benefits. Let’s assume we allocate 30% towards initial contributions and 70% for future contributions. Cost effective. 3%. Most commonly, startup advisors are paid with anywhere between 0. In this guide we go through important questions about startup equity for founders, employees and investors, including cap table management, splitting equity with your co-founders, common and preferred share classes, vesting schedules and employee equity compensation. Calculate Your Co-Founder Equity Split Check the boxes of each founder who contributed to the effort mentioned in each question. Startup equity. Launch. Tech co-founder equity: Hiring a CTO is the right choice if you can afford tech salary and a fair amount of equity. On average, founders offer 10-20% of their equity during a seed round. When a startup first begins, the founders usually own their entire company. If there are two founders or more, you may divide the founders shares in agreed-upon percentages (50/50, 50/30/20, 50/40/10,. With the FAST agreement, founders and advisors can agree on how to work together, what to accomplish, and the right amount of equity compensation in a short and simple 5-pager. 2022, the average annual pay for a CTO Startup in California is. Home Work. How much the individual receives depends on what stage the organization is in and the person’s experience level. This can be taken from similar job postings and the market as a whole. The CEO co-founder gets 5 more for being a CEO and 50 more for being a successful entrepreneur. The ideal co-founder will agree on most things (80%), but will disagree a bit and bring you a different perspective (20% of the time). We would like to show you a description here but the site won’t allow us. Investor’s 20% is thus worth nothing. This allows you to be taxed all at once for the value of your equity, which could. Because of the liquidation preference, the investors get $14 million right off the top. At a typical venture-backed startup, the employee equity pool tends to fall somewhere between 10-20% of the total shares outstanding. A well-calculated valuation ensures that equity distribution is fair and aligns with the individual contributions of each stakeholder. It involves a few key steps, which we will outline below:. Successful startups need 3-5 investment rounds before exit. Startup equity can be given to founders, employees, and investors as both a reward and an incentive for contributing to the growth and success of the. Current ownership. As a result, the equity share would be the contribution value divided by the company value, or 0. The quantity of capital that may be obtained and the conditions on which it becomes available are both impacted by how much it adds to the startup’s value and can be calculated using a startup equity calculator. The range is wide. The pro forma results can be carried over to our Liquidation Calculator to determine the proceeds to stakeholders under various exit scenarios. Dividing equity within a startup company can be broken down into five simple steps: Divide equity within the organization. For example, under a 4 year vest with a 1 year cliff – if the co-founder leaves or you fire them within the first. Currently available for Australia Pacific companies only. Angels can acquire a direct equity position, such as a 20% to 30% stake in the business. You will make mistakes and when you do, you'll need. However, Founders also enjoy the benefit of getting paid their own equity relative to their co-Founders, not relative to their actual investment. For tech startups, 10 or 15 million authorized shares is common. CFOs, Heads of People and law firms love that Ledgy. toolkit. The Startup Calculator can help co-founders understand the ultimate financial outcome for. Founders need to remember when it comes to valuation, everything is open to negotiation. These days VCs teach the founders to be incredibly stingy to employees especially when it comes to equity. g. 6577. According to ZipRecruiter, for example, the average salary for the position of “startup CEO” is just over $110,000 per year. 8. Grant access. By taking this course and utilizing my easy-to-use Startup Equity. Attorney Mary Russell counsels individuals on startup equity, including: Compensation Counsel on Job Offers. In the Silicon Valley Startup Attorney article, “Founders & Startup 101: I) Forms of Equity”, Chris Barsness outlines the most important terms that founders need to know in the world of startup equity and vesting. In the pre-seed and seed funding rounds, startups raise anywhere from $50,000 to $200,000 for a 5% to 10% equity stake. The Comprehensive Guide on Reverse Vesting. Therefore, to protect yourself vs. In addition, venture capitalists often look at founder equity splits as an indication of the team’s value to the startup. ). It will depend on how many founders you have and their contribution to the success of. Research by SaaStr backs up this suggestion. How to Handle a Co-Founder DepartureStartup equity refers to ownership in a startup company, typically in the form of shares or stock options, granted to employees, founders, and investors. SAFE is an acronym for Simple Agreement for Future Equity. We have founder equity as displayed in the table below. How to split equity among co-founders : YC Startup Library | Y Combinator. One major complicating factor with granting equity in an LLC is that W-2 employees of an LLC cannot hold equity in. The sweet spot is two co-founders at 36% of polling. Index VenturesOptionPlan. If you missed it, start your journey here: Introduction - Early Startup Equity — Getting it Right before continuing on if you haven’t already, and go in order from there. 0% President / COO -Non-Founder 150k-230k 200k 0-75k 1-3% 1. Industry leading data to motivate your team. Note: Yellow highlighted cells are manual inputs/assumptions. In some cases, co-founders and/or employees will agree to work for lower salaries in exchange for. For instance, consider this simple equity structure without founder vesting: Co-Founder 1 – 40%; Co-Founder 2 – 40%; Investor – 20%; If co-founder 1 decides to leave, he will take 40% of the shares with him. Salary replacement. Startup Equity Calculator. Multiply each of the founder’s values by the factor’s value to calculate the scores. g. 39% of business founders fund startups with personal funds. This cap table calculator for startup founders helps them understand how much equity they will own in their company under different circumstances. Decide how much of their total compensation you. Venture Capital Providers: 30 to 40 percent. S-A is $0. Equity split refers to the initial distribution of shares in a newly formed company, and is typically determined by its founders upon the incorporation of the business. Docracy: An open collection of free legal documents. One such method is the Founder’s Pie calculator. Mark Zuckerberg owned 21% of Facebook, Sergey Brin and Larry Page owned 31% of Google, and Reed Hastings owned 24% of Netflix. Founders typically set up a vesting schedule when they set up their companies, even if they are solo co-founders. However, it is important to note that only one founder from each company filled out this survey in 99% of the cases, so this is only indicative of one founders compensation, not the entire founding team. The Founder/Advisor Standard Agreement, or “FAST”, was developed by the Founder Institute to make the advisory agreement process more efficient for startup founders. SAFE is an acronym for Simple Agreement for Future Equity. The remaining $36 million is divided according to equity ownership. If the question doesn't apply to your situation, leave. For us, anything that has the word ‘simple’ is already winning! At Cake, it’s all about simple and fast. Equity dilution is defined as the decrease in equity ownership for existing shareholders that occurs when a company issues new shares. In this way, cap table modeling can help founders forecast the dilution of their holding and their potential payout based on the share ownership within the company. So far example, an investor could own 2,700 shares, which equates to 25% in equity. Assess the added value of each co-founder. After a year, a founder is entitled to 25% of their equity. Curated by Jason Atkins, Cake's Co-founder & President, from years of engaging and working with the world's best startup teams and experts. Let’s look at the valuation for two broader types of this form of equity. A typical (minimum) vesting schedule for a founder is 48 months with one-year cliff, but. Examples are in there for demonstration purposes, create your own elements from scratch. Whether you've recently received an equity offer or already hold equity in a company, our calculator is here to provide you with a straightforward estimate of what your shares could be worth in different scenarios. As you progress beyond this stage, you will. A very close call if we put the cut-off at 50%. they love you, and with some savvy negotiation, they invest for 10% equity. Fair Equity Allocation. Revenue. from the old $1. On average, founders offer 10-20% of their equity during a seed round. #. 2. Quiz. So, if you'd provide employees with paid day-offs, the final salary costs increase. For this reason, it’s important to allocate the right amount of equity for your employee option pool. This is mainly true for two-partner, 50-50 equity splits. g. Summary. Look, starting a new venture is hard, but having to figure out what is fair for each cofounder shouldn't be. Assuming that we have a high-tech startup, spinning out of a university with four members of the founding team. You should generally aim to reserve 10-15% of your total company equity for an employee stock option pool. Additionally, the backyards of each signed deal matter a lot. Startup CEO Salary Calculator US Based Companies that have raised under $100MAfter you submit your 409A request with equity and questionnaire data, your valuation analyst will schedule a kickoff call to discuss valuation models. This is one of the simplest startup valuation methods. Co-founder Equity Calculator helps co-founders split the baby. 1. So you divide the 20% by 1 minus the esop you need. This calculator walks you through a variety of events that can affect the division of a startup's equity. Venture investors choose to invest in startup companies (private companies) because they stand to. By taking this course and utilizing my easy-to-use Startup Equity Calculator (UPDATED to handle up to 7 cofounder slots--more than what 99. This calculator is a step-by-step guide that takes into account a number of factors, including the stage of the company, the industry, the amount of money raised, and the pre-money valuation. In exchange for their abilities and services, you would like to give them shares…What is common equity for startup? What is equity in a startup? Essentially, startup equity describes ownership of a company, typically expressed as a percentage of shares of stock. 4. Model Equity Calculator for Founders with Option Pool Expansion 10. Assume that we have a high technology start up spinning out of a university with four members of the founding team. So, if you add shares to your company through subsequent rounds of funding, if you want to maintain the relative value of your. $200,000. It is for this reason that Y Combinator introduced SAFE notes in 2013,. 00001. in other words, assuming equal experience, you'd be making $120k while they're making $80k, even in the same markets. 2013. What is Net Worth? Net worth is a key concept in personal finance and is often used to measure an individual’s financial health. Startup. 5 million / 10 million x 100%, respectively). For us, anything that has the word ‘simple’ is already winning! At Cake, it’s all about simple and fast. They decide how much equity they should own based on their roles and contributions to the company. Investors own 50%, and get $18 million, split between two firms. The calculator suggests an equity split determined by the anticipated effort-based. The startup equity calculator is used by entering details of each investors and founders. The one big inevitable topic is ‘equity’, and YES, it can be uncomfortable among founders to talk frankly about it, especially in Thai culture. However, the median startup CEO pay increased from $140,000 to $145,000. 1. Use equity management softwares. 3. At the time, Airbnb had a $200 million valuation. you have a choice to make: $10,000 additional salary or ~30% more equity. Amicable departure vs. Taxes. It usually happens a few months after the constitution of the startup. If you're like most startup founders, you're probably always looking for ways to get the most out of your startup financing. Source: The Founder Institute. Under “Next Round Assumptions,” fill out the estimated date of your next round, the company’s. Suppose a startup is raising $5 million in growth capital in an upcoming funding round. A business plan is crucial for startups, outlining goals. 99% of you will need), you. That said, it’s unlikely in most cases for non-founders to receive more than 5% of the business (bringing on a CTO can be the one common example of exceeding this mark). But, when a significant layer of value was added to the startup, each founder could receive a different percentage of that new layer, based on his or her. A startup equity calculator can help you make equity projections and get a better understanding of your stock options. But, to stay on the well-trodden path to success, getting your finances and investments in order is essential. This is slightly higher than the average startup CEO salary of $142,000 in 2023, driven by technical founders who earn more than their CEO counterparts. A resource for entrepreneurs and founders of startups in various stages of growth, WilmerHale Launch is your source for answers to the questions that impact you every day. Below is. Our startup equity calculator is designed to help quantify each of a startup’s co-founders’ contributions in order to more accurately split equity in the company so you can prevent disputes between team members and focus on what matters. When a startup raises a priced round in the future, SAFE holders' investments will convert into preferred shares using the valuation cap in the agreements to determine the price per share. Here are three methods you can use to calculate founder equity: Method 1: Equal Split. The equity split at 20% for the founders will typically be; 20-25% for the management team, 20% for the founders, and 55-60% for the investors (angel all the way to late stage VC). Employees Carta’s Insights team deciphered the state of founder equity division by studying the data from 18,000 founders, across 8,000 startups actively using Carta software for their captables. The equity distribution may be 51-49 or 60-40 or 40-30-30. Startup stock options are a form of equity compensation that startup founders offer to their employees. You can also ask if they’ve dealt with personal or. Revenue is the money that you generate through sales and is a measure of startup performance. It’s hard to bring a new, needed, and differentiated product into the world. Consisting of 10% – 20% ownership of your company, this pool is typically drawn from founders’ shares. Giving more than that to an investor is too much, which is risky for your business. Screenshot from the Co-founder Equity Calculator. The company had raised $1. 25 after two years. Comparable Pricing Method. It’s calculated by adding up all of your assets such as cash, investments, savings accounts, savings bonds, retirement accounts, real estate, and other assets minus any liabilities (such as total credit card debt, student loan debt,. The calculator allows for up to five investors and two co-founders. Find a company that’s comparable to yours (e. In the end, however, they don't have your back. Series A. We are not a cap table startup; instead, we like to think of Slidebean as a fundraising OS for startup founders. Initially, founders own 100% their startup’s equity, though they eventually give away the majority of their equity over time to co-founders, investors, and employees. On average, founders offer 10-20% of their equity during a seed round. Equity refers to the percentage of the startup that someone owns, while shares refer to the number of units of capital that someone owns. This might mean personal savings, starting your. After all, equity is what allows you to attract and retain top talent, as well as provide incentives for employees to stay with your company for the long haul. Co-Founder Equity Calculator which takes into considerations roles, contributions and risks: Foundr: Co-Founder Equity Calculator 2. Why startup founders should build a strong team . The quantity of capital that may be obtained and the conditions on which it becomes available are both impacted by how much it adds to the startup’s value and can. Medicare - 1. 1) Time Spent on the Startup. The law mandating 409A valuations was. Automate your equity plan. Startup Equity Pie Calculator. At the end of our 3-Year term (or whatever term we decide) the co-founders divide the company's ownership amongst the founders based on actual contributions. Who gets equity in a startup. In my world, the non-founder equity pool is 20% max. Equity ownership will be contingent on the company's valuation pre- or post-money. Here are three methods you can use to calculate founder equity: Method 1: Equal Split. Key takeaways: It’s common for your first, most crucial hires to ask for 1% of the company or more. As you progress beyond this stage, you will have less equity to offer. Share dilution can change both your financial stake in the company and how. If you have advisors that are indispensable to the venture, it may be worth it to give them a small percentage. Part 1. As you grow, equity is distributed among those who contributed to fund your startup, give you advise, or develop your product/service offerings. Experiencing the Thai startup ecosystem for almost a decade, HUBBA professionals have put considerable effort into relieving the founder’s pain in building a business. Startup Equity Calculator. The type of equity that we’ll be sticking to throughout this article is stock that represents an ownership interest. You can ask questions and iterate on the report with your analyst. But to create an effective option plan you need to know how much to award to each team member. The percentage depends on the startup’s valuation and other metrics. Co-founder equity split - (US) Startup Market Data 45%/55% :. Spargo says the calculator is built to help founders “understand the impact that their salary has on the long term value of their equity” by using a graphical representation to show how paying. Calculate how many shares need to be issued to reach your ownership target. 2. Since the SAFE price is higher than the S-A price, the SAFE automatically takes the lower price of the 2. How to value your startup – method #1: Decide how much money you want to raise. That is why FI developed a groundbreaking 'Equity Collective' where your program Leaders, Mentors, and FI HQ are vested in the success of your.