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Dear SaaStr: Is it True VCs Don’t Like to Invest Where Founders’ Equity is Fully Vested?

  • VCs are less rigid about founder equity vesting compared to the past, especially in hot deals with multiple offers.
  • Vesting is more about protecting founders than VCs, ensuring commitment and safeguarding against co-founders leaving with their equity.
  • VCs view vesting as a method to manage the cap table and protect their interests, but founders should prioritize protecting themselves from unexpected departures.
  • It is advisable for co-founders to have vesting schedules over time to prevent issues if a partner leaves early, ensuring fairness and commitment in the long run.

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