What is vesting in startups? Imagine you have a co-founder, and you both decide to start a business together with a 50/50 split of the shares. After 12 months, your co-founder decides that startup life is just too hard and he can no longer work 80 hours a week without a salary. He gets a full-time job and prioritizes a stable, easy life over the risky and stressful life of a startup founder. However, you decide to stay and keep building. Then, in 5 years, you get an acquisition offer for $100 million. Your co-founder comes back and says he wants half of that. It wouldn't be fair, right? This is what happens to many startups. A vesting agreement is designed to ensure that the above scenario doesn’t happen. If a co-founder leaves within a year, they would lose all their equity under a startup vesting agreement. Follow me to learn about startups! 🔔 I am the founder of an EdTech AI startup, building an AI-powered higher education and career- building tool. #StartupLife #Entrepreneurship #Vesting #Equity #Founders #StartupAdvice #TechStartups #BusinessGrowth #CoFounders #StartupTips
What is vesting in startups?
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Don’t have a co-founder from day one in your technology startup! Having a co-founder in your business is like being in a marriage; you cannot rush into it. 65% percent of startups fail due to conflicts between co-founders, often because they do business with people they barely know. Just as you would not marry someone you don’t know, you should not start a business with a stranger. Instead, do this: Start solo, build the product on your own with the help of contractors, get customers, raise small angel investment, prove your startup concept, and experiment and iterate the product. Then hire the CTO. The idea you have at the beginning of your startup will most likely change. If you have a CTO from the beginning, they may not be happy with the product you end up with, leave, and keep significant equity. Follow me to learn about startups every day! 📣 I am the founder of an EdTech AI startup, building an AI-powered higher education and career- building tool. #StartupAdvice #TechStartup #Entrepreneurship #SoloFounder #BusinessTips #StartupLife #FounderJourney #BuildAndGrow #CTO #Innovation #StartupSuccess
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Is my cofounder pulling his weight in our startup venture? Source: https://lnkd.in/gDRrN7td Is my cofounder not pulling their weight in our startup venture? #cofounder #startup #accelerator #college #business #entrepreneurship Hey there! Are you facing a similar situation where your cofounder seems to be lagging behind in your entrepreneurial journey? Read on to relate and maybe find solutions to this common dilemma many startup founders face. ### Background: We, college students, entered a summer accelerator with just an idea for $25k. Our cofounder has been giving fewer hours to our project than I have, despite having more free time. ### Lack of Initiative: - While I work over 100 hours a week, my cofounder puts in only about 5 hours. - He lacks proactive behavior and often seems disengaged from the project, treating it almost like a side gig. ### Frustration and Determination: - Frustratingly, my cofounder promises to put in more effort only if we get into the accelerator. - I feel the lack of shared passion and dedication hampers our progress. ### Seeking Advice: Please share your thoughts and advice on how to handle this situation 🙏...
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🤔 Ever wondered how to nail that tricky equity split in your startup? I’ve got some secrets to share! First, find the right co-founder. Network like crazy. Look for complementary skills. Clear roles and responsibilities are a must. Use tools like Make and Tilda to keep things smooth. Early conversations about equity are crucial. Discuss intellectual property and risk. Align short-term effort with long-term vision. Trust me, it’s worth it. I’ve seen too many startups fail because they ignored this. Don’t let that be you. Check out my full article for more insights. Your startup’s future depends on it! 🚀 Increase the probability of your startup success. From IDEA to first CUSTOMER in WEEKS. https://femaleswitch.app #meanceo, #gamepreneurship #startups #femalentrepreneur #fmsplaybook #femaleswitchplaybook
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Is my cofounder pulling his weight in our startup venture? Source: https://lnkd.in/gs43XXh6 Is my cofounder not pulling their weight in our startup venture? #cofounder #startup #accelerator #college #business #entrepreneurship Hey there! Are you facing a similar situation where your cofounder seems to be lagging behind in your entrepreneurial journey? Read on to relate and maybe find solutions to this common dilemma many startup founders face. ### Background: We, college students, entered a summer accelerator with just an idea for $25k. Our cofounder has been giving fewer hours to our project than I have, despite having more free time. ### Lack of Initiative: - While I work over 100 hours a week, my cofounder puts in only about 5 hours. - He lacks proactive behavior and often seems disengaged from the project, treating it almost like a side gig. ### Frustration and Determination: - Frustratingly, my cofounder promises to put in more effort only if we get into the accelerator. - I feel the lack of shared passion and dedication hampers our progress. ### Seeking Advice: Please share your thoughts and advice on how to handle this situation 🙏...
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Who Can Benefit from Startupify? 🚀 🌟 Individuals with an Idea: Whether you have a groundbreaking idea or are just starting to brainstorm, Startupify guides you every step of the way, from concept to execution. 🐾 Pet Project Enthusiasts: Hobbyists and passion project creators working solo will find the extra push they need, along with a vibrant community and top-notch resources. 📈 Small Businesses: Businesses lacking expertise can tap into our wealth of knowledge and tools designed to accelerate growth and success. 🤝 Startup Founders: Founders seeking a supportive community and valuable connections can network with fellow founders, mentors, and investors dedicated to innovation. At Startupify, we believe in the power of collaboration and the magic of ideas. Together, we'll turn your vision into reality, propelling you towards a successful future. ✨ Join us now and become a part of a visionary community #startupify #startups #startupsuccess #businessgrowth #enterpreneurship #smallbusiness #investing #artificialintelligence #innovation #socialnetworking
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🚀 Why 99% of Startups Fail — And How to Avoid the Trap Tech startups launch every day, but only a handful survive. The biggest reason? They focus on building, not solving. Here are the 3 silent killers of most startups: ❌ Feature Overload – Too many startups build fancy features nobody actually needs. Winning startups solve painful problems first before expanding. ❌ Ignoring Market Validation – If no one is willing to pay for your product, you don’t have a business—you have a hobby. Early customer feedback is worth more than any VC funding. ❌ Scaling Too Early – Many startups burn through cash hiring too fast or launching new markets before proving demand. Scale only when your product-market fit is undeniable. ✅ The Fix? • Find a problem that actually hurts. • Validate demand before you build. • Start lean, adapt fast, and grow when the market pulls you forward. 💡 What’s the biggest startup lesson you’ve learned? Drop your insights in the comments! 👇 #Startups #TechEntrepreneurship #ProductMarketFit #BusinessGrowth #LinkedInEngagement
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Also raises the question: why are so many universities offering #entrepreneurship programs designed to encourage more students to become #founders of #startups? Should that be the purpose of entrepreneurship #education? Isn't it more important to focus on fostering entrepreneurial #mindsets and #competencies that enable students to solve problems creatively and innovatively, regardless of whether they start their own business? What if, instead of pushing students towards the narrow goal of startup creation, we prioritized teaching them how to #think and #act entrepreneurially in any context, including within existing organizations, social enterprises, or their communities? Could it be that in our rush to create more student founders, we are missing the broader purpose of empowering the next generation to be versatile and resilient problem solvers?
The startup ecosystem is broken. Just look at the numbers. 90% of startups fail. If you think getting funded will solve your problems, think again, the numbers say otherwise. First, less than 0.05% of startups seeking funding — get it. But for those who do, 70% still fail. That's broken. Getting lucky isn't a strategy. - I've been in the startup space for 40 years. - I've been in the venture studio/mentor space for 22 years. I'm qualified to have this opinion. Most of the failure was preventable. Despite temporary setbacks, the winners keep on winning. Why? I've never seen anyone fail who had a strong focus on these four areas. #1 - Faith: You must believe. If you tolerate doubt, fear and worry, it will contaminate your faith. You can decide what you want to have faith in, but you must have it. #2 - Purpose: Founders who have purpose believe deeply they were put on the planet to make a huge difference. To do things that matter. That alone should kill 80% of the bad ideas, the solution/app no one wants or needs. #3 - RevOps: - the ability to take a flawed idea/model and make it viable - the ability to create a brand that becomes a movement - the ability to drive traffic (demand generation) - the ability to convert traffic into leads - the ability to convert leads into customers (pipeline performance) #4 - VC readiness: ** To become what investors are looking for, and then attract them to you. The founders who make these four ingredients their constant focus, win. Whatever we focus on, we magnify. I see these four traits in the audacious few who win, in both the bootstrappers, and the VC backed startups. To do better. We must Do better. Happy Saturday. ~~~ Like this? Follow Gerald Duran for daily Startup and VC advice, and sometimes — a kick in the nuts. #startups #founders #venturecapital #entrepreneurship
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I couldn't agree more. I can see some universities changing this, but some traditional institutions are still placing a heavy burden on students' shoulders, telling them: "You all can succeed, but it all comes down to you" transferring all the responsibility to them. There's no need for well-paid jobs, better policies to improve wealth distribution, social mobility, improvements in social welfare, or taxation reforms. No, it all comes down to you—the 18-year-old student who needs to figure out everything as quickly as possible because the world is volatile. **90% of startups fail. If you think getting funded will solve your problems, think again, the numbers say otherwise. First, less than 0.05% of startups seeking funding — get it. But for those who do, 70% still fail.**
The startup ecosystem is broken. Just look at the numbers. 90% of startups fail. If you think getting funded will solve your problems, think again, the numbers say otherwise. First, less than 0.05% of startups seeking funding — get it. But for those who do, 70% still fail. That's broken. Getting lucky isn't a strategy. - I've been in the startup space for 40 years. - I've been in the venture studio/mentor space for 22 years. I'm qualified to have this opinion. Most of the failure was preventable. Despite temporary setbacks, the winners keep on winning. Why? I've never seen anyone fail who had a strong focus on these four areas. #1 - Faith: You must believe. If you tolerate doubt, fear and worry, it will contaminate your faith. You can decide what you want to have faith in, but you must have it. #2 - Purpose: Founders who have purpose believe deeply they were put on the planet to make a huge difference. To do things that matter. That alone should kill 80% of the bad ideas, the solution/app no one wants or needs. #3 - RevOps: - the ability to take a flawed idea/model and make it viable - the ability to create a brand that becomes a movement - the ability to drive traffic (demand generation) - the ability to convert traffic into leads - the ability to convert leads into customers (pipeline performance) #4 - VC readiness: ** To become what investors are looking for, and then attract them to you. The founders who make these four ingredients their constant focus, win. Whatever we focus on, we magnify. I see these four traits in the audacious few who win, in both the bootstrappers, and the VC backed startups. To do better. We must Do better. Happy Saturday. ~~~ Like this? Follow Gerald Duran for daily Startup and VC advice, and sometimes — a kick in the nuts. #startups #founders #venturecapital #entrepreneurship
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Great question Dr Timothy Hor why are we just piling up brokenness on brokenness - this just adds to the ongoing conversation David Ireland recent post. RE University commercialisation/ equity splits including Steve Meller comments. Additionally, much of what is being taught in universities is still largely based the prior innovation cycles when money was cheaper etc and driven via the VC "casino" model and we continue to franchise USA based models. Per Davidsson Rowena Barrett Ann Sherry AO, Bronwyn Harch (FTSE, FQA) Certainly in Australia there is still way too much money that doesn't know how to filter a good idea and government and universities continue to perpetuate this. Those audiences who cannot afford the debt of a university education or the opportunity cost of start-up theatre get this - and need better. We have a whole generation who have grown up with this theatre and think its ok. The next will not and do not.
The startup ecosystem is broken. Just look at the numbers. 90% of startups fail. If you think getting funded will solve your problems, think again, the numbers say otherwise. First, less than 0.05% of startups seeking funding — get it. But for those who do, 70% still fail. That's broken. Getting lucky isn't a strategy. - I've been in the startup space for 40 years. - I've been in the venture studio/mentor space for 22 years. I'm qualified to have this opinion. Most of the failure was preventable. Despite temporary setbacks, the winners keep on winning. Why? I've never seen anyone fail who had a strong focus on these four areas. #1 - Faith: You must believe. If you tolerate doubt, fear and worry, it will contaminate your faith. You can decide what you want to have faith in, but you must have it. #2 - Purpose: Founders who have purpose believe deeply they were put on the planet to make a huge difference. To do things that matter. That alone should kill 80% of the bad ideas, the solution/app no one wants or needs. #3 - RevOps: - the ability to take a flawed idea/model and make it viable - the ability to create a brand that becomes a movement - the ability to drive traffic (demand generation) - the ability to convert traffic into leads - the ability to convert leads into customers (pipeline performance) #4 - VC readiness: ** To become what investors are looking for, and then attract them to you. The founders who make these four ingredients their constant focus, win. Whatever we focus on, we magnify. I see these four traits in the audacious few who win, in both the bootstrappers, and the VC backed startups. To do better. We must Do better. Happy Saturday. ~~~ Like this? Follow Gerald Duran for daily Startup and VC advice, and sometimes — a kick in the nuts. #startups #founders #venturecapital #entrepreneurship
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If you had one chance to change the startup world, would you take it? I did. Working closely with founders and having experienced firsthand the challenges and the excitement of being part of the incubating team have made me realize that the startup journey can be incredibly isolating and challenging. Founders often face numerous obstacles and setbacks, and it can be helpful to hear from others who have been through similar situations. One can provide valuable guidance and inspiration to aspiring and current founders by sharing stories of success and failure. Also, when I searched for a platform for founders to connect and share their experiences, I could not find something that could foster a sense of community— a candid conversation on ✅Scaling Startups ✅Pivoting businesses ✅Growing business And Many Information is abundant, but narrowing it down makes it knowledge, and I want to share the value and make it accessible to everyone. It is time to give back to the community the knowledge and expertise that can help startups scale up. Stay tuned for more updates. #FoundersAshram #Entrepreneurship #Founders #Startup #StartupScaling #StartupGrowth #Leader #Mentor #Mindset #Scaling
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Experienced Software Engineer | Full-Stack Web Development Specialist | IT Consultant
7moNini Sarishvili Vesting is such a crucial aspect of startup equity to understand! It’s fascinating how it ensures that commitment is rewarded and protects the team from scenarios where someone might walk away with undue gains. Have any of you experienced or witnessed challenges related to vesting in your own startup journeys? Let’s share our stories and insights to help each other navigate these complexities!