EP 15 — How Much Equity Should You Give a Co-Founder? (SPECIAL) cover art

EP 15 — How Much Equity Should You Give a Co-Founder? (SPECIAL)

EP 15 — How Much Equity Should You Give a Co-Founder? (SPECIAL)

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We're tackling the question founders ask most: how much equity to give a co-founder. The honest answer is there's no fixed number — equal splits have climbed to about 46% of two-person teams, but equal is only right when the contributions actually are, and what protects you isn't the percentage, it's vesting. We walk through the four-year vest with a one-year cliff, the CEO premium, part-time and moonlighting splits, every flavor of vesting from milestones to acceleration, and the classic horror story where a friend walks at month four still owning half the company. Then the German specifics — GmbH versus UG, why there's no restricted stock out of the box, and how Good Leaver / Bad Leaver clauses do the job a Delaware buyback would.

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