Executive Suite · founding-team equity

If a co-founder left tomorrow,who keeps the equity?

Skipping vesting is the single most-regretted founder decision — because the co-founder who leaves at month 11 still holding a big stake becomes a cap-table problem you pay for at every future round. This check grades each founder's equity structure against the standard and names the one thing to fix first.

Get the Check — $79one-time · instant download · yours to keep

Not legal, tax, or investment advice. Equity, vesting, and cap-table changes are governed by corporate and tax law — securities rules, the irreversible 30-day 83(b) deadline, board and shareholder approvals — and changing terms retroactively requires agreement from all affected parties. This check grades a structure and flags where it's exposed; it does not value the company, set or change ownership, draft documents, or tell you how to restructure. Bring a specific, documented question to a startup lawyer. It grades structure, never people.

Five deliverables · runnable
Equity-health scoring engine
runnable
Workbook — scorecard + dashboard
.xlsx
Equity-health audit playbook
.docx
De-risking runbook
.docx
Six-founder worked sample
.csv
Works alongside
Acquisition-Offer Survival Audit · Owner-Pay Kit · Devil's-Advocate Board
01.The Problem

The handshake that costs you the company.

#1 regret

In 2026 founder research, skipping vesting was the single most-cited regret. "We trust each other" is the most expensive sentence a founding team says.

month 11

A co-founder leaves before the would-be cliff, holding a material stake outright. Now an absent ex-founder owns a slice of your cap table — and contributes nothing.

required

Nearly all venture investors require four-year vesting with a one-year cliff as a condition of investment. Without it, they force a buyout or retroactive vesting — costing equity, legal fees, and months.

The fix is cheap and standard if you do it early, and expensive or impossible if you do it late. This check tells you, founder by founder, exactly where the structure is exposed — while it's still a conversation, not a lawsuit.

02.See It Work

Score one founder. Watch the dead-equity gate.

The preset is the 50/50 handshake: a material stake, no vesting, no cliff, nothing documented. It reads DEAD-EQUITY RISK. Now flip the vesting dimension to 2 — put them on a schedule — and watch the verdict release, even while the stake stays large. That's the whole insight: dead equity needs both a material stake and no vesting.

Score one co-founder

Mark each dimension 0–2. Same math as the workbook — nothing is sent anywhere.

Vesting schedule in placevesting

No vesting schedule at all - shares were issued outright and are fully owned regardless of tenure.

One-year cliff

No cliff - equity began vesting (or vested) immediately, so an early departure still keeps a chunk.

Size of the stake at riskstake

Holds a large, material ownership stake - the kind whose loss to an absent founder would visibly damage the cap table and spook investors.

Acceleration clause

No acceleration clause - on an acquisition, the founder could be terminated and lose years of unvested equity.

83(b) election filed (if applicable)

Uncertain whether 83(b) was filed / filed late / unconfirmed.

Documented in a founders' agreement

The split and terms are a handshake - nothing is papered in a founders' agreement or stock-restriction agreement.

Verdict
DEAD-EQUITY RISK
Equity health
6/100

Dead-equity kill-chain fired. This founder holds a material stake and has no vesting schedule — the equity is owned outright and cannot be clawed back if they walk. The release that protects the cap table is to put them on a vesting schedule (with counsel).

Fix first
Put the founder on a standard vesting schedule (and paper it)

Grades an equity structure, not a deal or a person. Not legal, tax, or investment advice. Equity changes touch corporate and tax law and the irreversible 30-day 83(b) deadline — bring a specific, documented question to a startup lawyer.

03.The Runnable Engine

The same verdict, from the command line.

The scoring engine ships as a zero-dependency script. Mark your founders, get the cap-table verdict and every fix-first. This is the verified output on the six-founder sample — the workbook and the demo reproduce it exactly.

The Co-Founder Equity Health Check
==============================================================
Departed co-founder no vesting (the trap)   6/100  DEAD-EQUITY RISK  [DEAD-EQUITY]
    fix first: Put the founder on a standard vesting schedule (and paper it)
Standard-vested active co-founder         82/100  SOUND
Small unvested advisor-founder            63/100  EXPOSED
    fix first: Put the founder on a standard vesting schedule (and paper it)
Fully-papered solo founder                82/100  SOUND
Non-standard vesting missed 83(b)         54/100  EXPOSED
    fix first: Confirm the 83(b) election (or raise the miss with a tax advisor)
Handshake equal-split co-founder           6/100  DEAD-EQUITY RISK  [DEAD-EQUITY]
    fix first: Put the founder on a standard vesting schedule (and paper it)
--------------------------------------------------------------
Cap-table verdict: FRACTURED
2 of 6 founder(s) carry dead-equity risk.

Grades an equity structure, not a person or a deal. Not legal or tax advice;
have a startup lawyer review and paper any equity change.
04.The Standard

Six dimensions. One dead-equity gate.

Vesting schedule

Whether equity is still being earned over time — or was issued outright and can't be clawed back.

One-year cliff

Whether nothing is earned before a founder proves a year of commitment.

Size of the stake

How material the stake is — the consequence-sizer that decides whether mis-structuring actually hurts.

Acceleration

Whether double-trigger acceleration protects the founder if they're terminated after an acquisition.

83(b) election

Whether the irreversible 30-day election was filed — a miss can mean a large tax bill at exit.

Documentation

Whether the split, vesting, and exit terms are papered in a signed founders' agreement.

The dead-equity gate

A founder is forced to DEAD-EQUITY RISK only when two conditions are present at once: they hold a material stake and there's no vesting schedule — the equity is owned outright and can't be clawed back if they leave. That's the precise dead-equity pattern. A large stake that's properly vesting is protected; a tiny unvested stake is survivable. The gate releases the moment either half clears, which is why the fix it names is almost always "put them on a vesting schedule" — though once shares are owned outright, that's a change only counsel can paper.

05.What This Is — And Isn't

A structure check, not a lawyer.

What it is
  • A per-founder equity-structure verdict with the one thing to fix first.
  • A cap-table rollup: CLEAN CAP TABLE, GAPS TO FIX, or FRACTURED.
  • A precise gate that fires only on genuine dead-equity risk.
  • Offline and deterministic — engine, workbook, and demo agree to the number.
What it isn't
  • Not legal, tax, or investment advice — and not a substitute for counsel.
  • Not a tool that sets your split or tells you how to restructure equity.
  • Not a company valuation, and not a guarantee of any investor outcome.
  • Not connected to your cap table — you mark each founder yourself.

Not legal, tax, or investment advice. Equity, vesting, and cap-table changes are governed by corporate and tax law — securities rules, the irreversible 30-day 83(b) deadline, board and shareholder approvals — and changing terms retroactively requires agreement from all affected parties. This check grades a structure and flags where it's exposed; it does not value the company, set or change ownership, draft documents, or tell you how to restructure. Bring a specific, documented question to a startup lawyer. It grades structure, never people.

06.Who It's For

Founding teams who'd rather fix it early.

  • · Co-founders who split equity on a handshake and never papered vesting.
  • · Teams heading into a first priced round, where investors will require a clean structure.
  • · Solo founders who want the structure investors expect before they raise.
  • · Anyone who just had a co-founder wobble and realized the cap table isn't protected.
08.Common Questions

The honest answers.

For each co-founder (or early equity holder), it scores six dimensions of equity-structure health — whether a vesting schedule is in place, whether there's a one-year cliff, the size of the stake at risk, whether there's an acceleration clause, whether the 83(b) election was filed in time, and whether it's all documented in a signed founders' agreement — into a 0–100 equity-health score and a verdict: SOUND, EXPOSED, or DEAD-EQUITY RISK. Every founder rolls up to a cap-table verdict — CLEAN CAP TABLE, GAPS TO FIX, or FRACTURED. It answers the question every founding team should ask before it matters: is our equity structured to survive one of us leaving?

Catch the dead equity.
While it's still a conversation.

One purchase, lifetime access, 12 months of updates. $79, once.

Not legal, tax, or investment advice. Equity, vesting, and cap-table changes are governed by corporate and tax law — securities rules, the irreversible 30-day 83(b) deadline, board and shareholder approvals — and changing terms retroactively requires agreement from all affected parties.

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