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Right now, my founder and I are deciding about vesting for the founders. What is the opinion of Alchemist on this subject?

Written by Mia Scott

Alchemist strongly encourages founder to put themselves on vesting schedules for a few reasons. First, if you or your co-founder ends up leaving the company for whatever reason, if you have a vesting schedule in place, the company will not be held hostage by the amount of equity the leaving party has. If you don't have a vesting schedule, when one party leaves, they will get the same equity as the party that stays -- and that can kill the company.

Secondly, if you don't put yourself on a vesting schedule, the lead investor / VC in your next financing round will. And they may start your vesting from the day of their investment. If you already were on a vesting schedule, they may give you partial or full credit for the shares that have already vested. And so you should pre-empt the vesting schedule by putting yourself on a vesting schedule now.

Vesting schedules are typically done over 48 months / 4 years, with a one year cliff. You can have your vesting start date started retroactively -- e.g. if you've been working at the company for 2 years, you could put your vesting as having started say 2 years ago.


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