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Why does every startup incorporate with 10,000,000 shares?
Jan 12, 2022
–Ravi Parikh
Every tech startup in the US incorporates as a Delaware C Corp with 10,000,000
shares of Common Stock at the date of founding. This is remarkably consistent–if
you go through an accelerator like Y Combinator or Techstars, if you use the
default options with Stripe Atlas or Clerky, or if you ask a tech law firm for
advice, they'll all point you in the same direction.
Incorporating in Delaware and as a C Corp are pretty well understood and well
explained on the internet, but why 10 million shares
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