Kristina S. Subbotina, Esq.’s Post

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That startup lawyer building a new-generation law firm for startups and their investors

Imagine pouring your heart into a startup, only to find your co-founder taking a significant chunk of equity while contributing little. That’s exactly what happened to Robin Chase of Zipcar. Robin Chase and her co-founder, Antje Danielson, started Zipcar with a 50/50 equity split. However, as the company grew, tensions developed because Danielson didn’t contribute as expected, ultimately leading to her removal from the company. How to prevent it? Founders MUST have vesting schedules. Think you get all of your equity right away when you incorporate your startup? Think again. Here’s why a vesting schedule is the right decision for your startup’s future: 🚀 Investor Expectations: Investors are watching closely. Without a vesting schedule already in place, they'll demand founders add one before closing a priced round financing, like your Series A. VCs need assurance that you and your co-founders are committed for the long haul and won’t walk away with a hefty equity stake after the financing round closes. It’s all about aligning incentives for the company’s growth for the long-term. 💥 Protect Against Founder Breakups and Disputes: Imagine pouring your heart into a startup, only to find your co-founder taking a significant chunk of equity while contributing little. 🔑 The Takeaway: A vesting schedule isn’t just a formality—it’s essential for aligning the interests of your founding team and the company’s success, can protect against potential founder disputes and will show investors you are serious about building your startup into a success story in the next several years. Don’t let a simple oversight jeopardize your startup’s future. Have questions about founder equity? Let’s connect to keep your equity grants and cap table on track! #startuplawyer #startupfounder #vestingschedule #founderequity

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