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Kevin Rose contrasts traditional startup funding models with new approaches for AI-native companies. In the conventional method, venture capitalists receive 20% ownership at Series A, while a 10-20% option pool is divided among 30 or more employees, leading to each individual receiving between 0.25% and 1.5% equity.
Rose describes an alternative AI-native model where founders skip certain investment rounds and retain majority control. When additional talent is needed, new team members are granted 3-5% or more equity each, resulting in smaller teams with larger individual stakes.