article thumbnail

The New Deal – A Founding CEOs Value is Non Linear

Steve Blank

The customary vesting model has founders vest their stock over 4-years , and when the founding CEO gets in over their head the VC’s bring in professional management. Most founding CEO’s don’t know that they’re cannon fodder in the search for a business model. More often than not the founding CEO leaves the company.

Vesting 251
article thumbnail

The Equity Equation

venturehacks.com

Ask the Attorney” – Founder Vesting. Pitching Hacks , Cap Table , and Co-founder Interview. Our Spreadsheet. Check out the video tour. Charles River Ventures : We back people who want to change the world. Supporter Posts. Scott Edward Walker. How to make a cap table. We don't pay you to work here. The Option Pool Shuffle.

Equity 40
article thumbnail

How to pick a co-founder

venturehacks.com

Breakups are hard If you’re going to fall out with your co-founder, do it early, recover the equity into the option pool to keep the company going, and recruit someone else great to fill the missing slot. Build in founder vesting (a.k.a. Or are more successful companies started by just a single co-founder?

Cofounder 101