Founder
A person who starts a company, typically receiving the largest equity stake.
Definition
A founder is someone who conceives of, starts, and builds a company from scratch. Founders typically receive large equity grants (often 20-50% each at inception), which vest over time. They usually hold common stock and have significant control over company direction, especially in the early stages. Co-founders split equity based on their agreed contributions.
Why it matters
Founders set the company culture, strategy, and equity allocation. Their decisions directly affect your option grants, the company's fundraising path, and ultimately what your equity is worth.
Example
Two co-founders split 80% of the company 50/50 at incorporation, each getting 4M shares. They set aside a 20% option pool for employees. After a Series A, they each own about 32% on a fully diluted basis.