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Comment on Ask YC: Equity question for very early stage startup

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A) I'd recommend that you reallocate your shares sooner rather than later so that you actually have a pool of unallocated stock to distribute to other new employees.

B) I think that you have to sit together as a team of 3 and determine what you think this persons value contribution will be. You are on the right track with a base+bonus thought. Remember also that you can arrange for the shares to vest over a period of time. This helps minimize the threat that you give someone more shares than they are worth - as the shares vest you gain better insight into the persons value contribution.

3 founders is dangerous. I know personally of at least 2 businesses that imploded in part due to the nature of the number 3.

Be careful!

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