How can I avoid being screwed by my co-founder?

First, of course, you are already in trouble. If you are worried about your co-founder already, trouble will come.

The best way to mitigate founder economic issues is a longer vesting schedule. This may seem counter-intuitive at first. Isn’t a long (e.g., 5–10 year) vesting schedule “taking away” something you’ve earned?

No. What a long vesting schedule does is:

  • Force both of you to go long, or at least plan to.
  • It aligns your interests.
  • It forces you to have the tough conversations around if you have asymetrical commitments.
  • It means the more committed founder, if there is one, is fairly incented to be so.

Try it. More here:

A Simple Commitment Test For You And Your Co-Founders | SaaStr

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Published on July 19, 2019

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