Legal points for the design of the startup's shareholding structure
A well-designed equity structure is the foundation for startup governance stability, balancing control rights, incentives, and future financing needs.
Equity allocation within the founding team is the first step. It is recommended that founders clarify the equity allocation plan early to avoid disputes after the company develops.
Option pool design is an important tool for attracting and retaining talent. It is recommended to reserve 10%-20% of the option pool during the seed or angel round.
Voting rights design is key to protecting founder control. This can be achieved through unanimous shareholder agreements, dual-class share structures, or voting rights delegation.