Show HN: Startup Equity Adventure Game

Welcome, Future Founder! You are about to embark on the full journey of a startup -- from a napkin idea all the way to an IPO. Along the way you will learn how equity works, how funding rounds dilute ownership, how employee stock options are priced, and what it all means in real dollars. What is your startup called? Pick something fun -- this is your company for the next 9 stages. What's the founder's name? This is you -- the lead founder. We'll track your equity throughout the journey. What you will learn: ● How founding shares work ● SAFEs and convertible notes ● Option pools and 409A valuations ● Series A / B / C dilution ● Vesting cliffs and exercise windows ● IPO payouts and waterfall analysis ● The real math behind "I own 10%" Note: Most US startups incorporate as a Delaware C-Corporation. Start Your Journey → This game draws on concepts from An Introduction to Stock & Options by David Weekly. We recommend reading the full PDF after playing for a deeper dive into the mechanics. For more on fundraising, check out these excellent resources from Y Combinator: Guide to Seed Fundraising, How to Plan an Early Stage Startup's Finances, Standard Deal Documents, and the YC Startup Library. If you're building something people want, I wholeheartedly recommend applying to Y Combinator. It's the single best launchpad for early-stage startups -- the knowledge, network, and fundraising support are unmatched. Created by Ilia Baranov with Claude. Stage 1: Founding Shares Every company starts by authorizing shares. Think of these as slices of the pie. The number itself is somewhat arbitrary -- 10 million is a common choice because it makes the math easy and leaves room for future grants. As a founder, you will issue yourself shares at essentially zero cost (the par value is usually $0.0001/share). Total Founder Shares 10,000,000 1M20M Number of Founders 1 2 3 4 Solo founder — 100% of shares Adjust each founder's share of the equity. Percentages must total 100%. Founder 1 (you) 50% Founder 2 50% Founder 3 25% Founder 4 25% 83(b) Election — File Within 30 Days! When founders receive shares subject to vesting, they must file an 83(b) election with the IRS within 30 days of receiving the shares. This is one of the most important tax decisions a founder will ever make. With 83(b): You pay ordinary income tax on the shares' value at grant. Since founder shares are issued at par value (~$0.0001/share), the tax bill is essentially $0. All future appreciation is taxed as long-term capital gains (max ~20% federal + state) when you eventually sell. Without 83(b): You pay ordinary income tax (up to ~37% federal + state) on each batch of shares as they vest, at whatever the shares are worth at that point. If the company is worth $50M when your shares vest, you owe income tax on millions of dollars of "income" — even though you can't sell the shares yet. Throughout this game, we assume the founder has filed an 83(b) election — meaning all future gains are taxed as capital gains, not ordinary income. Coming Up: The Employee Option Pool Before raising your first priced round, you will set aside a portion of shares as an employee option pool. This is how startups attract talent without paying top-dollar salaries — employees get the right to buy shares at today's price, betting that the company will be worth much more in the future. Typically 10-20% of shares are reserved for the pool, and it is carved out before investors price the round (diluting founders, not…

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