Day Zero Valuation
gojomo: As nostrademons suggests, 'valuation' is likely the wrong question, and you should just skip to what is probably the real motivation for the question, relative equity splits.But if valuation really is the question: be careful about setting it high before you formalize and restricted/time-vested stock shares. For certain tax purposes (83b election), it's helpful if the shares are handed out at a moment when they are really cheap. Then the founders can buy them at fair value, do the 83b election, and all subsequent appreciation/vesting triggers no tax liability until the shares are eventually sold.(A good reference on 83b elections: http://www.startupcompanylawyer.com/2008/02/15/what-is-an-83...)