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Index Ventures

2 resources from Index Ventures we point founders to, and the questions each answers.

📄 Article
✓ Link checked Free Intermediate

Why we picked it This is the durable reference for the structural line between a co-founder and a hire: co-founders own the company outright on day one, everyone hired afterward comes through the option pool, and even a senior non-founding CTO or VP lands in the 0.8% to 1.5% executive band, not the founder tier. Reading it makes the cost of mislabeling a senior hire as a co-founder concrete before you sign anything.

Rewarding Talent: Founders, Investors and Employees

From Index Ventures by Index Ventures 20 min read

  • Co-founders start with 100% between them; every later hire is granted from the ESOP pool, a hard structural distinction
  • A non-founding C-level or VP hire typically lands around 0.8% to 1.5%, an order of magnitude below founder equity
  • Model the dilution across future rounds before you grant, since a founder-sized grant compounds into a very expensive mistake
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Answers What's the difference between a co-founder and an early key hire, and how do I decide which I need?
📄 Article
✓ Link checked Free Intermediate

Why we picked it Founders always ask two questions: how big should the pool be, and how much does one hire get. This answers both with hard numbers instead of vibes: a seed pool of roughly 10 to 15% of fully diluted equity, and a per-role grant table (senior engineer around 1.0%, mid-level 0.45%, junior 0.15%) so you benchmark each offer by seniority instead of guessing.

Rewarding Talent: Option Grant Allocation Considerations and Benchmarks

From Index Ventures by Index Ventures 15 min read

  • A seed-stage option pool typically runs 10 to 15% of fully diluted equity, which is the same carve-out investors ask you to create at a priced round
  • Individual grants scale by role and seniority: senior engineers land near 1.0% of FDE, mid-level around 0.45%, juniors near 0.15%
  • A typical seed team of ten adds up to roughly 5% of the fully diluted equity in grants, a useful sanity check on your total pool
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Answers How do I set up an ESOP pool and grant equity to my early employees legally?