Quick & Dirty How-To: Employee Stock Option Allocations
A great question came up recently in discussion with one of First Round's CEOs: how much equity should I allocate for hiring my next round of employees? For a company that has raised a first institutional round of capital, this question is important not only when making competitive job offers, but also when calculating what size option pool the company will need before raising the next round of capital. Stock option comparables are hard to come by, so I thought I should post what I dug up for ...