Should co-founders issue themselves 100% of the issued shares at founding, or vest over 4 years?

There are fewer bigger mistakes you can make as a founder than not having 4+ vesting. Ideally, a decade.

Why?

Because vesting protects the most committed founders from the least committed founders. That’s what it really does.

More here:

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

There’s nothing that can bring you down more than having say 4 co-founders … and one leaves after say 6 months, another in 12 … and then having the other 2 stay and give their heart and soul for 20 years … and everyone make the same, or close to it.

It hangs over your head. It’s demotivating. It eats at you.

Things need to be fair among founders.

A good, thoughtful founder vesting schedule makes sure things are. Very effectively.

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Published on January 16, 2019

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