We sit across the table from a lot of early-stage founders. The same handful of equity mistakes show up over and over. The good news is they are all preventable with one focused afternoon at the start.
First: no vesting. Equal splits with zero vesting are the single most common pattern and the single most painful to unwind when one co-founder leaves six months in.
Second: undocumented contributor equity. Percentages promised to early designers, advisors, or contractors that never made it into a signed agreement turn into disputes the moment the company raises money.
Third: IP that does not actually belong to the company. Code, designs, and brand work created before incorporation often still sit with the individual who made them. A clean IP assignment closes the gap.
Fourth: no founder agreement on paper. Roles, decision rights, and what happens if someone leaves should be written down before they are tested in real life.
Fifth: giving away too much equity, too early. ESOP pools, advisor grants, and small 'friends and family' rounds add up faster than founders expect. Plan the full first 18 months at once.
