What is Founder Vesting?

And What it Means for Startup Founders

Photo by Shannon Rowies on Unsplash

Founder vesting works as follows:

The founders agree on a certain amount of equity that each founder will receive when the company is sold or goes public.

Why Use Founder Vesting?

Founder vesting is a great way to motivate founders to stick around for the long haul. It is an especially good idea if you are bootstrapping a company, because it can help you attract talented co-founders who might otherwise not want to give up a lucrative job at Google or Facebook.

Founder of Cudy Technologies (www.cudy.co), a full-stack EdTech startup helping teachers and students teach and learn better. I am also a mentor and investor.