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How Much Equity to Give Your Cofounder - Michael Seibel
This is an AI-generated summary of a YouTube video "How Much Equity to Give Your Cofounder - Michael Seibel" by Y Combinator!

The key idea of the video is to prioritize co-founders' long-term motivation and commitment over negotiation tactics when dividing equity and to use vesting and a cliff to ensure equity safety for startup teams.

  • 💰
    00:00
    When dividing equity with co-founders, prioritize their long-term motivation and commitment to the company over negotiation tactics.
  • 💰
    01:28
    Use vesting and a cliff to ensure safety when giving equity to startup teams, including founders, with four-year vesting and a one-year cliff.
  • 💼
    02:00
    As a CEO, it's important to keep your team motivated, even if they don't receive any rewards within the first year.
  • 💡
    02:06
    Having a one-year cliff for your vesting is like a hedge that allows you to correct any incorrect decisions about choosing co-founders without long-term harm to the company, so it's better to be more generous with equity to create long-term motivation for your startup.
  • 💰
    02:47
    Equity stake should be the motivation for co-founders, not external factors.
  • 💼
    02:58
    Working on weekends and feeling like true owners of the company motivates employees to work late and recruit their friends.
  • 💰
    03:08
    Equal equity splits among co-founders can be valuable for a company's viability and motivation, but there is no specific formula for achieving this.
  • 💰
    03:25
    Consider the future and motivation of co-founders before granting equity, and only make those who are worth it co-founders.
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How Much Equity to Give Your Cofounder - Michael Seibel
This is an AI-generated summary of a YouTube video "How Much Equity to Give Your Cofounder - Michael Seibel" by Y Combinator!