TLDR Founders · HEADLINES & TRENDS

WHY FOUNDER VESTING NEEDS REINVENTING

jaredhecht.com3 min read

Summary from the TLDR Founders newsletter

It’s frustrating when founders, who have slogged through nearly a decade of company building, end up with a small slice of the pie because early co-founders or employees vested large equity stakes and departed before things started working. To avoid this, extend the vesting schedule to six years or more. This ensures co-founders or early employees who don’t work out in the long term don’t leave you with too little.