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Michael Seibel

08/16/24

@ Y Combinator

Every founder, regardless of their departure circumstances, should resign from the board and sign a release, allowing remaining founders to manage voting rights effectively.

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

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.

Allison Cooper

05/20/25

@ a16z

Founders should resolve any issues regarding ownership in writing early on, such as confirming if a friend does not want to be involved anymore.

Y Combinator Cast

03/07/18

@ Y Combinator

Investors should maintain transparency with founders regarding their rights and any changes to their agreements, fostering a strong relationship.

Michael Seibel

12/17/21

@ Y Combinator

I've seen founders give up control of their board, which can lead to them being fired, just to raise a million dollars.

Michael Seibel

08/16/24

@ Y Combinator

The CEO must have the authority to fire underperforming co-founders, ensuring accountability and effective leadership within the team.

Jessica Livingston

05/29/17

@ Y Combinator

When a cofounder leaves, especially in a two-founder setup, it can be particularly challenging as it leaves one founder to manage everything alone.

Kirsty Nathoo

04/28/17

@ Y Combinator

Vesting is crucial for founders because it prevents a situation where a founder leaves the company and takes a significant portion of equity with them, which would be unfair to the remaining founders.

Kirsty Nathoo

04/28/17

@ Y Combinator

Single founders should implement vesting on their shares to set a cultural example for employees, demonstrating that everyone is committed to the long-term success of the company.

Michael Seibel

08/16/24

@ Y Combinator

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.