Vest before you raise (2/8)

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Funds raise could precipitate all kinds of emotions, including greed, among co-founders. 

It is essential to safeguard the company against this and clear up all ‘cloud’ regarding the amount of dedication and effort, which could result into certain stake. Funding or no funding.

Vesting of stocks should be implemented from Day 1, and not put in to practice after the funds have been raised or the VCs ask for it. 

In case of multiple founders (2 or more), this could bring a lot of heartburn later and might just precipitate the ‘tumbling down’ of the founder relationship and hence the startup.

“The reason is that if you found a company with a partner (or 2) and somebody decides to leave the company do you really want them to be able to walk away with half of the value when they may have only worked with you for 9 months and all the hard work is ahead? Founder vesting is an insurance policy for all team members involved.”