AN ODE TO EARLY EMPLOYEES

Summary from the TLDR Founders newsletter

Ex-post-facto founders – early employees shouldering 'co-founder-like' burdens – often get the worst equity deal in startups today. Founders undertake the most risk but get outsize rewards, later employees the reverse. However, early team members take on substantial risk too, often for <1% equity. Suggestions: use honorary co-founder titles, allow promotions into the founding team, dedicate a 10-15% equity pool, and standardize founder-like liquidity. Rewarding critical early teammates proportionally benefits both sides.