I'm doing some due diligence regarding a US registered (Delaware C-corp) tech startup in Europe, where the founders are located and living in the EU. Although the business idea is very good, there are already operating competitors, while this company is still in the development stage.
As I provide VC access and some decision say, I am a bit concerned about the "team" as the founder and major shareholder has a great fear of share dilution and thus not willing to give his 3-5 team/partners more than 2% after 5 years with a SAFE agreement. This seem quite extreme as the company's present share value is only $100, does not have any products, has not yet been funded nor have any capital. As a European, I seriously doubt someone can remain motivated enough to drive a company forward under these terms.
What are the typical/acceptable share distributions for these types of contracts?
(Assuming the initial core team of the company will have 3 people.)