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The Co-Founder Dilemma – Rebekah Campbell
At the start, no one wants to haggle over shares because, at this stage, the company isn’t worth anything. Right?
Wrong. The company does have a value at the start. It’s worth the energy and intellect the founding team is prepared to invest. When I started Posse, I felt this nascent idea had no inherent value, but when I look back on the level of work and perseverance I’ve applied over three years, that commitment was an important asset at the beginning.
- joyce 13y agoI would recommend a standard Silicon Valley 4-year vesting schedule, not a 3 year. It is amazing how many companies get into trouble because they overlook this little point. When I was a corporate attorney, I would counsel my clients to think about how they would feel if one cofounder had to leave the company to tend to a sick family member - what would be fair then? (It is easier for them to discuss that scenario than to think of one person just flaking). Taking the vanilla approach of 4 year vesting allows everyone to be safe without having to have the pre-nup discussion on the wedding night.