{"type":"rich","version":"1.0","provider_name":"Transistor","provider_url":"https://transistor.fm","author_name":"Startup Therapy","title":"The Most Expensive Equity Doesn't go to Investors","html":"","width":"100%","height":180,"duration":2781,"description":"Why do founders fight over giving an investor 15% but hand out huge chunks to co-founders, employees, and advisors with far less certainty of return? The episode argues that investor dilution is often the cleanest trade because cash and terms are clear, while “everyone else pays in maybes and promises.” It warns that early-stage equity feels worthless but represents 100% of a company’s future value, so giving away 50% to a near-stranger can become a permanent cap table problem that also costs speed, optionality, and sanity. Practical fixes include vesting, cliffs, tying equity to real value creation, defining what happens if someone stops contributing, and putting breakup terms in writing early. The discussion also critiques employee equity as time-based rather than performance-based, and advisor equity as often unaccountable, where tiny percentages can hide very expensive outcomes.\nWhat to listen for:\n00:00 Investor vs Founder Equity\n01:26 Equity Is Priceless\n03:43 Co-Founder Split Hangover\n06:04 Why People Underperform\n11:15 Fairness Turns To Resentment\n12:44 Will's Unsubscribe Story\n15:53 Vesting And Breakup Terms\n18:17 Early Employees Option Pool\n20:26 Equity As Compensation Trade\n21:59 Paying Twice With Equity\n22:14 Does Equity Change Effort\n23:10 Lottery Ticket Reality\n27:23 Equity Rewards Three Things\n27:37 Advisor Equity Math\n31:00 Reputation Versus Contribution\n33:30 Network Intros Social Capital\n35:56 Advice Has Shelf Life\n40:24 Pricing Advisor Time\n44:06 Treat Shares Like Cash\nResources:\nStartup Therapy Podcast\nhttps://www.startups.com/community/startup-therapy\nWebsite\nhttps://www.startups.com/begin\nLinkedIn\nhttps://www.linkedin.com/company/startups-co/\nJoin our Network of Top Founders\nWil Schroter\nhttps://www.linkedin.com/in/wilschroter/\nRyan Rutan\nhttps://www.linkedin.com/in/ryan-rutan/","thumbnail_url":"https://img.transistorcdn.com/9y9tyZ-ziui558cT6TMlYq3DaFTS8yyOuY7HekWBCbM/rs:fill:0:0:1/w:400/h:400/q:60/mb:500000/aHR0cHM6Ly9pbWct/dXBsb2FkLXByb2R1/Y3Rpb24udHJhbnNp/c3Rvci5mbS9zaG93/LzYzOTYvMTU3NjI4/MDk2MS1hcnR3b3Jr/LmpwZw.webp","thumbnail_width":300,"thumbnail_height":300}