Founders

Any founders with experience with allocating equity in early stage businesses?

Don’t know what’s normal to allocate in a small group of contributors and need some advice.

Building fintech and web3 brands⚡️

https://www.linkedin.com/in/bradmichelson

Typically you don’t give contributors equity unless they’re able to work for you for a long time for their equity to vest 

Carta also has good charts of how much equity to allocate based on the stage of the co

Since equity is forward looking, generally best to align incentives and give equity for *future* work (ie employees/contributors who will be around for a while) instead of past work. This is why it's best to have equity vest (most common is 4y vest with 1y cliff) instead of being given all at once.

Tools like pave.com can help benchmark compensation.

I have experience doing this. Would be happy to share my 2 cents.