#equity

A $2M seed at $18.4M pre-money, an $8M Series A, and a $20M Series B — 2026 median deal terms — dilute a founder's stake to 65.6% worth $91.9M. Published survey data says real retention runs lower, due to option-pool refreshes this simplified model doesn't include.

We ran a three-founder scenario (idea originator, technical co-founder, part-time investor-operator) through a transparent weighted formula — idea, time, capital, and experience — and the split moved meaningfully away from an even three-way default.

Marcus exercised 12,000 ISOs at $7 strike when FMV was $42. The 2022 IPO peaked, then crashed 80% by tax day. He owed $80K of AMT on a position now worth less than the strike. Here's the exercise math, the exit options, and what the calculator should have shown before he wired.

10-15% of new tech hires leave inside year 1 and forfeit their entire cliff. On a $240K grant that's $60K of equity value gone. Here's how the cliff actually works, what triggers the forfeit, and the negotiation move that softens the trap.