Start-Up Stock (Equity) Distribution Excel Model
Originally published: 17/03/2019 21:39
Last version published: 17/03/2019 22:02
Publication number: ELQ-54601-2
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Start-Up Stock (Equity) Distribution Excel Model

A simple but powerful tool to let you calculate your ownership percentage after employee grants and fundraising.

I have been a member of multiple founding teams and have used a version of this spreadsheet to help determine the founders think about equity distribution - often BEFORE a single share is distributed.

As a founder, or member of a founding team, you want to know what YOUR ownership percentage will be after you make employee grants, create an option plan, and complete multiple round of fundraising. This spreadsheet will show you your ownership percentage at each step - as stock/option grants are awarded and funds are raised.

This model will allow you to plug in stock grants for your first key employees/advisors. Then plug in how much you raise at what valuation and the size of the employee Incentive Stock Option plan to see what happens to your ownership percentage. While the model is not "protected" (you can change any cell you want), it is Color-Coded and clearly indicates which cells you should enter/adjust the data.

There is a "sample" plan showing how you MIGHT distribute equity - but this is just a starting point to give you thoughts for your company.

Included are recommended percentage ownership for C-level executives, key employees, individual contributors, and advisors with notes about how these amounts should be adjusted for members of the founding team.

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1 Excel Spreadsheet

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