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Ask HN: Equity split up details and standards

1 pointsby rohanprabhualmost 11 years ago
http:&#x2F;&#x2F;tinyurl.com&#x2F;ch8qolj<p>I was going through this article and understand that once the option pool was created it was not included in the calculation when the company received a valuation of 1$M valuation.<p>But once the angel investor invests , the next round the valuation is based on only 66.66% of the company which means it doesnt include the option pool and the angel investor equity stake.. why is this so ?<p>in the next round .. all the equity except the first employee stake is included to calculate the % to be issued to the public ?<p>Clarity on this and are there any standards or specific guidelines followed ?

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