In my last blog post, I presented some ideas for determining the split of a startup’s shares among the founders. Another question that should be addressed in this context is the vesting scheme for founders’ equity: basically, what happens when a founder leaves the company earlier than expected?
A German startup I’m working with is preparing for its initial incorporation. In this context, the topic of how to allocate shares between founders came up. In Germany, startup teams often default to allocating shares equally between founders. However, that is not always fair and may lead to resentment in later stages. In this article, I’ll share some ideas that are used by tech startups in the US.