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MS

Michael Seibel

06/07/19

@ Y Combinator

Equity splits should maximize the motivation of your co-founders to stay committed to the company over the long term.

Video

YC

How Much Equity to Give Your Cofounder - Michael Seibel

@ Y Combinator

How Much Equity to Give Your Cofounder - Michael Seibel

06/07/19

Related Takeaways

MS

Michael Seibel

08/16/24

@ Y Combinator

Aim for close to equal equity splits among co-founders to maintain motivation and prevent resentment.

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

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.

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

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

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.

HT

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.

MS

Michael Seibel

06/07/19

@ Y Combinator

As a CEO, your focus should be on creating an equity split that motivates your teammates rather than just negotiating a deal.

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.