Understanding Founder Equity Vesting Schedules
Understanding Founder Equity Vesting Schedules
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How Does Vesting Affect Co-Founder Equity?
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How Does Vesting Affect Co-Founder Equity?
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Vesting: What It Is and How It Works
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Sam Altman highlights co‑founder vesting as the key safeguard: pre‑agree that equity is earned over time, typically a four‑year schedule with a one‑year cliff, so a 50/50 split accrues 25% after year one, 50% after year two, and so on. This simple structure clarifies outcomes if a founder later transitions, keeps the cap table streamlined, and makes fundraising far smoother because investors strongly prefer companies with vested equity. His top advice: set vesting from day one and nurture the pa
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