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YC

Y Combinator Cast

04/28/17

@ Y Combinator

Pay yourself and your co-founders to avoid complications during founder breakups; think of co-founder wages like a marital prenup.

Video

YC

Legal and Accounting Basics for Startups with Kirsty Nathoo and Carolynn Levy (HtSaS 2014: 18)

@ Y Combinator

Legal and Accounting Basics for Startups with Kirsty Nathoo and Carolynn Levy (HtSaS 2014: 18)

04/28/17

Related Takeaways

YC

Y Combinator Cast

04/28/17

@ Y Combinator

Founder breakups can become contentious if founders haven't paid themselves, leading to leverage for the fired founder in negotiations.

HT

Harj Taggar

09/27/24

@ Y Combinator

To avoid co-founder breakups, have regular one-on-one conversations to address disagreements and maintain open communication.

MS

Michael Seibel

08/16/24

@ Y Combinator

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

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.

SA

Sam Altman

03/18/17

@ Y Combinator

If you don't establish vesting for co-founders, a fallout can lead to dead weight on your equity table, making it hard to attract investors.

MS

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.

HT

Harj Taggar

03/26/21

@ Y Combinator

Once you've decided on a co-founder, formalize your partnership through legal incorporation and a vesting agreement to ensure shared commitment.

JL

Jessica Livingston

10/25/13

@ Y Combinator

Founder relationships are crucial to a startup's success; founder breakups can severely impact productivity and morale.

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.