Founder Vesting
Founders agreeing to vest their own shares over time — just like an employee's grant — so someone who leaves early doesn't walk away with a large, fully-owned stake.
Quick Answer
Why would a founder agree to vest shares they already technically own?
Because investors almost universally require it before funding — unvested founder equity protects the company if a co-founder leaves early, and its absence is one of the most common flags in early-stage diligence.
- Investors expect this as standard practice, not a concession
- It protects remaining founders as much as it protects investors
- Missing founder vesting is a common diligence red flag
The Lovie Advantage
Lovie applies founder vesting on the same cap table as employee grants, so ownership and vested status are always in the same place.
See how this connects to 83(b) Election. For the formal definition, see the SBA's guide to staying legally compliant.
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