What to Do if a Co-founder Leaves With Equity? Lucas Pols from Pegasus breaks down the critical strategy for protecting your startup's equity when a co-founder decides to leave. A four-year vesting schedule with a one-year cliff is your best defense against potential equity disasters, ensuring your cap table remains clean, and your startup's future is secure. #Startup #Founder #Entrepreneur #VC

What to do if a co-founder leaves with equity? That is a rough scenario. One, all the co-founders should be on a four-year vesting schedule with a one-year cliff. That helps protect against losing out on all the equity that you currently have. If they wanna leave within the first year, they walk away with nothing. You don't want to have a bunch of dead equity on the cap table. You can try to buy it back, but make sure that you're on a vesting schedule with a cliff.