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.

Founders need to be incentivized to continue working on their startup; without vesting, they could walk away with full ownership at any time, which undermines their commitment to the company.

If you don't see the long-term value in your co-founders, you should reconsider their roles on your team and whether they deserve a generous equity grant.

Typically, equity is subject to four-year vesting, meaning co-founders must work for four years to fully earn their equity stake, along with a one-year cliff where no equity is earned if they leave or are fired within the first year. Vesting with a one-year cliff acts as a safety mechanism, allowing you to correct any poor decisions about co-founders without long-term harm to the company.

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.

Vesting aligns incentives among founders, ensuring they all work together to grow the company before any of them can benefit from their equity.

Equity should vest over time, meaning co-founders earn their shares gradually, and cliffs ensure they must stay for a minimum period to receive any equity.

The primary safety mechanism for giving equity is implementing vesting and a cliff, which ensures that co-founders earn their equity over time.

Implementing vesting and cliffs protects the cap table and allows for smoother transitions if a co-founder needs to leave.