Wow. Peter Walker has done it again.
Peter, the resident data geek at CARTA, released his 2025 benchmarks on how founders are actually sharing equity — with co-founders, advisors, employees, and investors. If you don’t already follow his Data Minute, you should. It’s hands-down the best source for real-world benchmarks on capitalization tables.
Here’s the big picture: while solo founders are on the rise (and with AI coding tools, that trend will only grow), most high-growth startups rely on some kind of shared equity model. Why? Because while startups can’t always pay market salaries, they can offer ownership. Equity creates alignment, rewards commitment, and, if done right, can build serious wealth.
Need proof? When Bill Spruill and Charles Gaddy sold GDC to the London Stock Exchange, 24 people walked away as millionaires. And of course, everyone knows the story of the PayPal Mafia.
Below are my takeaways from Peter’s latest work. But don’t just skim this: download the full deck below, study it, and talk to a trusted advisor (CED is here for you!) before making any equity decisions.
Why This Matters
Equity isn’t just math — it’s alignment.
Get it wrong, and you risk:
- Co-founder disputes that fracture trust.
- Advisors holding large stakes long after they’ve stopped contributing.
- Employees who feel undervalued or unclear about their options.
- Messy cap tables that scare away investors.
Get it right, and you:
- Keep your team motivated and committed.
- Attract and retain top talent.
- Raise capital more smoothly.
- Preserve your own stake for the long run
Key Lessons for Founders
The slide deck is full of useful information on a range of options available. While I’m not recommending just one approach for every startup (your situation is may be unique to you and your company), there are several basic tenets I think are worth highlighting.
Founders
- Vesting is non-negotiable.
Use the standard: 4 years with a 1-year cliff. It protects the company and prevents messy exits.
Advisors
- Equity should be small but meaningful. Typical grants: 0.1%–1.0%.
- Vesting matters here, too. Use 2 years with quarterly or monthly increments.
- Formalize expectations. Advisory agreements should outline hours, intros, and deliverables. Equity = contribution.
Employees
- Your option pool is a recruiting weapon. Early-stage pools: 10–20%.
- Refresh as you grow. A healthy pool keeps you competitive.
- Educate your team. Make sure employees understand strike price, vesting, and upside potential.
Investors & Fundraising
- Raise with purpose. Don’t raise just because you can — raise to reach the next milestone (plus a cushion).
- Understand dilution. SAFEs (pre- vs. post-money) can swing ownership dramatically.
- Model everything. Always know pre- and post-money impacts before signing.
- Expect the option pool to change. Investors will likely require an expansion. Know the effect on your ownership.
- Keep it clean. Random grants and overlapping SAFEs turn off serious investors.
The Big Idea
Equity is a tool, not a gift. Use it intentionally to align incentives, protect your company, and set yourself up for long-term success.
That’s why I recommend Carta’s resources — they make this complex stuff simple and give you free tools to model ownership over time. View and download Peter’s deck below!
What Founders Should Do Next
If you’re a founder (or planning to become one), learn this now. It’s far easier to structure equity correctly from the start than to clean up a broken cap table later.
Peter Walker’s analysis comes from 45,000+ cap tables — so the benchmarks are grounded in reality, not guesswork. Use them.
If you want to talk through your situation, connect with one of our FIRs, or hear how other founders are navigating these questions, schedule a time with us.
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