Legal: Equity & cap tables

Showing 6 articles for Legal: Equity & cap tables.

Digests

Equity & cap tables

YouTube

How to avoid being exploited as a technical founder or engineer

Y Combinator November 1, 2023


Equity & cap tables 9
Identity & self-belief 7
Management 5
  • Unequal equity splits rarely have a legitimate justification — push back.
  • Being excluded from decisions while writing all the code is exploitation.
  • Asking for a seat at the table often fixes the problem immediately.

Equity & cap tables

Podcast

Bringing on a partner, trade shows, pricing, and equity: listener Q&A

Startups For the Rest of Us October 17, 2023


Equity & cap tables 8
Pricing strategy 7
Product-market fit 6
  • Low churn means stop building — a mature product is a luxury.
  • Giving a partner 30% equity demands full-time work and a proven track record.
  • Add value instead of discounting; discounts are the easy, lazy path.

Equity & cap tables

YouTube

How to distribute startup equity fairly among founders

Rob Walling September 12, 2022


Equity & cap tables 9
Unit economics 6
  • Equal founder splits are the default — and usually wrong.
  • The TOC framework turns time, salary, and cash into a fair split.
  • Vesting protects the cap table if a founder walks early.

Equity & cap tables

YouTube

How much equity to give early startup employees

Y Combinator January 25, 2021


Equity & cap tables 9
Hiring & recruitment 5
  • First employees typically get 1–2%; plan the full pool before distributing
  • Equity is a tool to boost success odds, not a pie to divide
  • No successful founder has ever regretted being generous with early equity

Equity & cap tables

YouTube

How to split equity with cofounders to maximise long-term motivation

Y Combinator June 6, 2019


Equity & cap tables 9
Hiring & recruitment 5
  • Equity splits should maximise motivation, not reflect negotiation outcomes
  • Four-year vesting with a one-year cliff makes generosity safe
  • If a cofounder isn't worth a generous grant, rethink the relationship

Equity & cap tables

YouTube

Understanding SAFEs, dilution, and cap tables for early-stage founders

Y Combinator October 17, 2018


Equity & cap tables 9
Fundraising & VC 8
  • Post-money SAFEs let you calculate exactly how much you've sold
  • Stacked SAFEs plus option pool can cut founder ownership in half before Series A
  • Over-optimising your valuation cap changes final ownership by barely 1%

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