Video · 9 min
How Much Equity to Give Your Cofounder
Michael Seibel · Y Combinator (Michael Seibel) Free Beginner
Seibel argues for near equal splits with real co-founders and explains why founders regret being stingy far more than being generous. He draws the line between a co-founder who shares the risk and an employee who takes a salary, which is exactly the distinction you are trying to make. Watch this before you anchor on a lowball number you cannot walk back.
- Near equal splits keep a strong co-founder motivated across the four vesting years
- Founders regret under-granting co-founders more than over-granting them
- Someone needing a full salary and small equity is employee one, not a co-founder
