Guides
In-depth guides for founders and early hires.
All guides
- Understanding vesting and cliffsVesting is how you earn your equity over time. The most common startup schedule is four years with a one-year cliff: nothing vests in your first year, 25% vests on your first anniversary, and the rest vests monthly over the next three years. What you keep if you leave depends on what has vested and, for stock options, whether you buy them in time.
- Founding employee vs co-founder: ownership, risk and questions to askA founding employee joins early to build a meaningful part of a company. A co-founder helps establish and lead the company itself. Compare the responsibility, decision-making authority, compensation and ownership rights in the actual offer, not just the title.
- How to write a founding role job descriptionAn effective founding role job description is not a corporate template. It should lead with mission and scope, be transparent about stage and compensation, and clearly describe the team, culture, and next steps so the right candidates can self-select.
- How to negotiate founding team compensationNegotiate startup compensation by understanding the stage and tradeoff between cash and equity. Earlier stage means more equity and lower cash. Be clear on equity terms, vesting, and role scope. Most startups have flexibility on equity but fixed cash budgets.
- What to look for in your first 10 hiresYour first 10 hires define company culture and set the foundation for growth. Look for generalists over specialists, people who are comfortable with ambiguity, and those who can scale alongside the company. Avoid hiring too deep too early.
- How to evaluate equity offersEvaluate equity offers by understanding the stage, option pool size, and your ownership percentage. Ask about the 409A valuation, liquidation preferences, and vesting schedule. More equity at an earlier stage means more risk but higher potential upside.
- What to look for in a startup before joiningBefore joining a startup, evaluate the founders' track record, product-market fit signals, funding status, and team dynamics. Look for clarity on role expectations, equity terms, and growth potential. Talk to current and former employees.
- Red flags when evaluating founding rolesRed flags include unclear equity terms, no vesting, founders with poor track records, unclear product direction, and toxic culture. Also watch for unrealistic expectations, poor communication, and misaligned incentives. Trust your instincts.
- How to hire a founding engineerHiring a founding engineer requires evaluating technical skills, cultural fit, and equity expectations differently than later hires. Look for full-stack capability, ownership mentality, and comfort with ambiguity. The best candidates have built Side projects, contributed to open source, or started their own projects.
- How to structure founding team equityFounding team equity should be structured with 4-year vesting and a 1-year cliff. Co-founders typically receive 10-40% each, with the CEO often having a controlling stake. Early hires receive meaningful equity (0.5-3%) to align incentives with company success.