How do startups allocate equity?

Legal analysis: 1, it is more appropriate for the founder to hold more than 30% of the company's equity. The A-share listing rules stipulate that if a company has more than 30% shareholders directly or indirectly, it can be considered that the company has actual controllers. The shareholding ratio of the largest founder is greater than the sum of the shareholding ratios of other co-founders, which can avoid the dispute between the two founders when they have different opinions on one thing.

2. Co-founders and employees jointly hold more than 30% of the shares. Such a shareholding ratio can not only keep the co-founder's personal shareholding at a distance from the founder, but also enable the founding team to hold more than 60% of the shares as a whole, thus ensuring the initiative to control the company.

3. Investor's equity accounts for 30%-40%. Excluding the shares held by the founders, co-founders and core employees, the remaining shares are reserved for investors.

Legal basis: Article 71 of the Company Law of People's Republic of China (PRC). Shareholders of a limited liability company may transfer all or part of their shares to each other. Shareholders' transfer of equity to persons other than shareholders shall be approved by more than half of other shareholders. Shareholders shall notify other shareholders in writing to agree to the transfer of their shares. If other shareholders fail to reply within 30 days from the date of receiving the written notice, they shall be deemed to have agreed to the transfer.