[pbiggar]

I regularly talk to founders who are going through the process of leaving their startup, and something that always gets tricky is what happens with your vested equity. Friendships are lost over this question.

I did a bunch of research and the most common thing that happens is this:

- the departing founder reduces their ownership to 5% or less (giving the shares back to the company, even if you've vested them)

- the departing founder receives at most $25000 (depending on financial circumstances of the company).

This is typical for companies that want to stay on the startup (rocketship track). This may not be the case for your company, but either way I'd try to ensure the company is structured for the success of those who are staying there.

Some founders ask for a lot more money or they want to keep ownership of the company - both cause a lot of trouble for the company and may lead to the company dissolving (in which they get nothing). They also destroy friendships and relationships, which are valuable in the long term in tech.