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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.

Video

Co-Founder Equity Mistakes to Avoid | Startup School

@ Y Combinator

Co-Founder Equity Mistakes to Avoid | Startup School

08/16/24

Related Takeaways

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.

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.

Michael Seibel

08/16/24

@ Y Combinator

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

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.

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.

Harj Taggar

03/26/21

@ Y Combinator

When deciding on equity, start with a 50-50 split, as both co-founders are likely to contribute equally at the beginning stages of the startup.

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.

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.

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.