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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.

Video

Co-Founder Equity Mistakes to Avoid | Startup School

@ Y Combinator

Co-Founder Equity Mistakes to Avoid | Startup School

08/16/24

Related Takeaways

Michael Seibel

08/16/24

@ Y Combinator

When distributing co-founder equity, consider not just immediate contributions but also long-term motivation over the entire vesting period.

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.

Michael Seibel

08/16/24

@ Y Combinator

Be generous with co-founder equity to motivate your founding team during the challenging early years of a startup.

Joe Lonsdale

04/26/24

@ My First Million

You should be generous with equity to founders and early employees to foster a sense of ownership and commitment.

Michael Seibel

06/07/19

@ Y Combinator

As a CEO, you should aim for your co-founders' equity stakes to inspire them to work passionately, rather than having to motivate them daily.

Michael Seibel

06/07/19

@ Y Combinator

While equal equity splits are a common guideline, they may not always be applicable; consider the future motivation of your co-founders when deciding on equity distribution.

Harj Taggar

03/26/21

@ Y Combinator

If one co-founder has been working on the idea longer, it may be reasonable to adjust the equity split, but avoid short-term optimization that could harm long-term motivation.

Sam Altman

03/18/17

@ Y Combinator

Founders should be generous with equity for early employees, as they are the ones who build the company over time.

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.