[Market Trends] Co-Founder Equity Mistakes to Avoid | Y Combinator
📌 Navigating Co-founder Equity in Startups
Michael Seibel discusses co-founder equity splits and breakups in tech startups, emphasizing the importance of generosity in equity distribution to motivate founders during the uncertain early years of a startup. He advises against stinginess, which can lead to co-founder departures and jeopardize potential success. Seibel highlights common mistakes in equity distribution, such as over-complicating the decision-making process and failing to account for the motivational needs of co-founders throughout the startup's initial years. He also covers the essentials of vesting and cliffs, the importance of essential co-founders, and best practices for managing potential founder departures or role changes.
