11
Solve the ‘dead equity’ problem with a longer founder vesting schedule

Solve the ‘dead equity’ problem with a longer founder vesting schedule

4 years ago
Anonymous $rxtAWepgzY

https://techcrunch.com/2020/10/17/solve-the-dead-equity-problem-with-a-longer-founder-vesting-schedule/

Editor’s note: Get this free weekly recap of TechCrunch news that any startup can use by email every Saturday morning (7 a.m. PT). Subscribe here.

The four-year vesting schedule that the typical startup uses today is a problem waiting to happen. If one founder ends up quitting a year or two before the last cliff, they still own a large share of the cap table through many rounds to come. The departing founder might consider that fair, but the remaining founder(s) are the ones adding on the additional value — and resentment is not the only issue.

Last Seen
43 minutes ago
Reputation
0
Spam
0.000
Last Seen
32 minutes ago
Reputation
0
Spam
0.000
Last Seen
4 hours ago
Reputation
0
Spam
0.000
Last Seen
10 minutes ago
Reputation
0
Spam
0.000
Last Seen
6 hours ago
Reputation
0
Spam
0.000
Last Seen
about an hour ago
Reputation
0
Spam
0.000
Last Seen
21 seconds ago
Reputation
0
Spam
0.000
Last Seen
about an hour ago
Reputation
0
Spam
0.000
Last Seen
8 minutes ago
Reputation
0
Spam
0.000
Last Seen
38 minutes ago
Reputation
0
Spam
0.000
Last Seen
25 minutes ago
Reputation
0
Spam
0.000