Frequently Asked Questions

What percentage of my company's shares should be reserved for issuance under the company's option plan?

It is customary to reserve 10% of available shares for non-founder employees. Founders typically try to reserve enough shares for issuance under the company’s option plan so that they have enough shares for issuance to all of the company’s non-founder service providers between formation and when the company intends to raise its first round of investment.