What’s the best way to distribute company equity?

Babak Nivi (Co-founder of AngelList and Venture Hacks. Previously, he was an entrepreneur-in-residence at Bessemer Venture Partners and Atlas Venture.)
Are founders really 1000x more valuable than employees? – Venture Hacks

Is it fair for founders to own about 100% of a startup while employee #1 only owns a few percent? Are founders 10-1000x more valuable than employees? The answers are: Yes, it is fair. Value doesn’t matter, timing does. When the founders start the company, it is worth approximately $0. So their equity is worth $0. Let’s say the founders work for 6 months, make progress, and then raise money at a $10M post. Then employee #1 joins and gets 1% of the… (read more)