Hey guys, I have incorporated a company recently in Delaware. Authorized shares is 10 million.
Currently my product is under development. It might take 4 more months. I have incorporated my company sooner to file patents and trademarks under my company name. I’m planning to bring more people on board after 4 months once my product is ready and once i get some investment.
I don’t want to be a greedy founder who takes everything. So can someone tell me what would be the ideal percentage for a single founder?
typically you should leave 10-20% of the authorized shares for an option pool to be issued to future employees.
unless you intend to have a co-founder, which case, depending how much if he/she brings in IP or money, you should leave another 20-30% block for co-founder.
either way, you should keep 60-80% initially as you WILL be diluted later as your raise more money and should try to stay above 51% as long as possible.
This is a meaningless question and if your lawyer and accountant didn’t explain to you why, you should switch lawyer and accountant.
Seriously. Ask a lawyer what “authorised shares” means.
What percentage? Single founder = 100%.
You’re just wasted your time asking yourself questions like that.
Get a CoFounder
A match cannot light itself
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