Typically, equity is subject to four-year vesting, meaning co-founders must work for four years to fully earn their equity stake, along with a one-year cliff where no equity is earned if they leave or are fired within the first year. Vesting with a one-year cliff acts as a safety mechanism, allowing you to correct any poor decisions about co-founders without long-term harm to the company.

Equity should vest over time, meaning co-founders earn their shares gradually, and cliffs ensure they must stay for a minimum period to receive any equity.

When a founder is fired, it's reasonable to provide a small severance package, typically one to three months, but this is less common if they leave voluntarily.

In early-stage startups, technical employees may find themselves doing the work of a co-founder while receiving only 1% or less equity, which is not a fair arrangement.

If a founder relationship isn't working out, that founder should leave or be fired before the vesting cliff, as this protects the remaining team and ensures accountability.

The primary safety mechanism for giving equity is implementing vesting and a cliff, which ensures that co-founders earn their equity over time.

The standard vesting period for stock in Silicon Valley is four years with a one-year cliff, meaning founders earn 25% of their shares after one year.

If you don't establish vesting for co-founders, a fallout can lead to dead weight on your equity table, making it hard to attract investors.

The first four to six years of a tech startup are critical for value creation, and even if one founder stays longer, it's important to share equity generously with co-founders who contributed to the startup's early success.