America Destroys Its Advantage
April 29, 2025
For decades American Universities have been the envy of the World. With the brightest minds and the best facilities, these globally recognized institutions acted as a magnet for talent everywhere.
I always recommend allocating more than the standard 10% for your employee stock option pool. 15% is a good starting point, here’s why:
In your later fundraising rounds, founder dilution will become an increasing issue. You can reduce the pressure you’re under from investors to allocate more stock for employees then, if you already created a large option pool at the beginning.
A large option pool allows you to be generous with your early employees and align your interests with theirs. I usually suggest the 1st 10 employees should get ~10% equity in total.
If you happen to find someone absolutely incredible, you’ll be immediately ready to give them an offer with a large equity grant, without any need for more legal work. Plus the equity doesn’t decay, you can always use it in the future.
Best of luck out there.
