What happens to equity if a co-founder leaves early?
The short answer
With vesting done right, they keep only what they've earned and the unvested portion returns to the company, which is exactly why vesting exists. Without it, a departing co-founder can hold a huge dead-weight stake that scares off investors and future hires. This one clause is the difference between a survivable breakup and a company-killing one.
Go deeper, your way
3 hand-picked resources, 3 link-checked. Pick how you want to dig in.
📄 Article
✓ Link checkedIndiaFreeIntermediate
Why we picked it
A practical India-specific walkthrough of equity split, vesting, and IP clauses in a co-founder agreement, from a mainstream Indian legal services provider. It covers what a US template will miss.
Why we picked it
A detailed, clause-by-clause drafting guide with Indian legal context, including enforceability and state-wise stamp duty, that goes deeper than a generic template. Written for Indian founders specifically.
Why we picked it
The canonical dynamic-equity framework for fairly splitting ownership based on real contributions before funding, when nobody yet knows who'll do what. A strong mental model even if you convert to fixed equity later.
