Founder (Reverse) Vesting: An Equitable Solution

When there is more than one founder of a new venture, the issue of an equitable division of the equity pie should be at the forefront of their planning. The bottom-line is that not all founders are created equal. As such, these inequalities should be reflected in the way founders’ shares are distributed. Nevertheless, this only addresses part of the issue brought about by the distribution of founders’ shares. All founders should consider what would happen if one (or more) of their co-founders departed the new venture for a better opportunity?