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Rajan Paswan

Stealth • 7m

You've got a killer startup idea, but building it needs a team. Your co-founder brings the marketing, while you do coding. But how do you ensure they're in for the long term? Here comes the Co-founder Vesting Schedule... What is a co-founder vesting schedule? Think of your company's ownership like slices of a pizza. A vesting schedule is like a gradual "earning" of those slices over time. Your co-founder doesn't get the whole pie(entire his shares) upfront. Instead, they earn ownership piece by piece (like slices of pizza!) over a set period. This keeps them invested and working towards the big success. Things to consider: • Vesting period: How long it takes to earn all slices (3-4 years is common). • Cliff period: A waiting period before they earn any slices (e.g., 1 year) to ensure commitment. • Part-time work: Ownership reflects their contribution (fewer slices for part-timers). Comment Down Anything Else Which You Might Want to Know 👇

9 replies18 likes

Replies (9)

Anonymous 4

Stealth • 7m

Nice way to ensure your co-founders don't runaway from the equity.

1 replies1 like

Anonymous 3

Stealth • 7m

Vesting does solve commitment issues.

1 replies1 like

Anonymous 2

Stealth • 7m

Thanks a lot for this

1 replies2 likes

Anonymous 1

Stealth • 7m

💯💯This is great

1 replies2 likes

Rajan Paswan

Stealth • 7m

Why is a vesting schedule important? • Long-term commitment: It incentivizes your co-founder to stay on board and see the vision through. • Fair play: Everyone gets a slice of the pie (ownership!) based on their contribution over time. • Protection for you: If things don't work out and your co-founder decides to "disappear" early, they won't walk away with a big chunk of the company they haven't fully "earned."

0 replies2 likes

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