I'm really curious what most people do now-a-days. A long time ago I started a company with 3 friends. We were advised to divide the company basically by shares/points/option. We each got 1 point for each month we were with the company. So first month each of us has one point. Second month each has 2 points. If someone quits then in 6 month it would have been 6, 6, 6, 2 which means the 4 would own 30%, 30%, 30%, 10%. In a year it would be 12, 12, 12, 2. That's 31.5% each for the 3 remaining partners and the guy who left is now down to 5%

At the time that seemed like a great idea.

Then I listened to the podcast, Startup and I hear the Alex Bloomberg offer his partner 10%. "Seriously? You haven't actually done anything yet". It seemed to me he should have used the point system. At best he should start with 2 or 3 more points (or heck even more because he's the "talent") but otherwise given there was basically nothing to the company yet it seemed fair. If his partner puts in the time in a few years they'll be nearly equal.

They settled on some random numbers but it seemed short sighted. Maybe they'd need another partner. The points system seems to work. New partner starts, you decide on some starting points, possibly zero, just vest your points. If it was 5 people who've been working a year and you come on at the end of year 1 then in 4 more years it will be 60,60,60,60,60,48. That's 17% for the 5 originals and 13% for the new partner

The 2nd season had the same issue. Instead of going by time invested in the company they were just picking random numbers. It seems very arbitrary and unfair. Of course maybe the point system is just as unfair to some.