The company’s structure will likely change over time as the team grows and new investors come on board. See the following page for a diagram of how OCV companies will change their structure from initial incorporation towards a round of external funding.
Open Core Ventures companies will typically have an equity ownership capitalization that resembles the following progression.
graph TD subgraph Incorporation Company --> OCV["OCV: 100%"] end subgraph FounderHired[Founder Hired] Company2[Company] --> OCV2["OCV: 50-90%"] Company2 --> Founder2["Founder(s): 10-50%"] end subgraph OtherEmployees[Other Employees Hired] Company3[Company] --> OCV3["OCV: 45-80%"] Company3 --> Founder3["Founder(s): 10-45%"] Company3 --> Employees3["Other Employees: 0-10%"] end subgraph PricedRound[Priced Round] Company4[Company] --> OCV4["OCV: 30-70%"] Company4 --> Founder4["Founder(s): 10-30%"] Company4 --> Employees4["Other Employees: 10-20%"] Company4 --> NewInvestors["New Investors: 10-20%"] end Incorporation --> FounderHired --> OtherEmployees --> PricedRound
Also see Dilution