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MS
Michael Seibel
08/16/24
@ Y Combinator
Experience alone does not justify a larger equity share; a co-founder must be a key contributor to the team.
Video
YC
Co-Founder Equity Mistakes to Avoid | Startup School
@ Y Combinator
08/16/24
Related Takeaways
KM
Kat Mañalac
05/24/19
@ Y Combinator
If you're not willing to offer a potential co-founder equal equity, you should reconsider if that person is the right fit for your team.
MS
Michael Seibel
08/16/24
@ Y Combinator
In cases of unequal equity splits, a common mistake is assuming that one co-founder deserves a significantly larger share simply because of an agreement, which can lead to imbalances and conflicts.
MS
Michael Seibel
08/16/24
@ Y Combinator
Being generous with co-founder equity is crucial because co-founders provide the initial energy and activation needed for the company to succeed, especially in the early years.
MS
Michael Seibel
08/16/24
@ Y Combinator
When distributing co-founder equity, remember that most of the work has yet to be completed, so equity should motivate future contributions rather than reward past efforts.
MS
Michael Seibel
06/07/19
@ Y Combinator
Being more generous with equity for co-founders is beneficial, as it fosters long-term motivation to stay committed to the startup, especially during challenging times.
MS
Michael Seibel
06/07/19
@ Y Combinator
If you don't see the long-term value in your co-founders, you should reconsider their roles on your team and whether they deserve a generous equity grant.
HT
Harj Taggar
09/27/24
@ Y Combinator
It's advisable to split equity equally between co-founders to ensure both feel equally invested in the startup's success.
MS
Michael Seibel
08/16/24
@ Y Combinator
Having an idea is not a valid reason for a 90-10 equity split; execution is what truly matters in a startup.
KM
Kat Mañalac
05/24/19
@ Y Combinator
Ideally, co-founders should have developed the idea together and worked on building the product from the start, but even if one co-founder joined later, an even equity split is still preferred.