Tools

Search

Explore

Videos Channels Figures

Atmrix

About

Tools

Search

Explore

Videos Channels Figures

Atmrix

About

JL

Jessica Livingston

06/27/24

@ Lenny's Podcast

I often flagged unusual equity allocations in applications, as they can indicate potential issues in founder relationships.

Video

LP

The social radar: Y Combinator’s secret weapon | Jessica Livingston (co-founder of YC, author)

@ Lenny's Podcast

The social radar: Y Combinator’s secret weapon | Jessica Livingston (co-founder of YC, author)

06/27/24

Related Takeaways

MS

Michael Seibel

03/07/18

@ Y Combinator

Cap tables with unequal equity splits, where founders have sold large portions of their company early, are concerning.

YC

Y Combinator Cast

04/28/17

@ Y Combinator

In a startup with multiple founders, equity allocation should ideally be equal to avoid potential conflicts and ensure trust among the team.

KN

Kirsty Nathoo

10/17/18

@ Y Combinator

It's crucial for founders to keep track of how much equity they've sold through SAFEs, as this affects their ownership percentage and future fundraising.

MS

Michael Seibel

08/16/24

@ Y Combinator

I should be more generous with equity to ensure my co-founder remains motivated when challenges arise.

YC

Y Combinator Cast

02/24/15

@ Y Combinator

It's crucial to discuss equity early and openly among founders to ensure everyone feels the split is fair and representative of their contributions.

YC

Y Combinator Cast

02/24/15

@ Y Combinator

Equity splits among founders should generally be more or less equal to avoid future conflicts, as significant mismatches can lead to resentment and issues down the line.

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

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.

MS

Michael Seibel

05/07/22

@ Y Combinator

Investors often have different incentives than founders, which can lead to misalignment in priorities.