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Dead Weight On The Cap Table: The Startup Equity Problem Causing Litigation And How You Can Fix It

Monday, September 14, 2026Guest AuthorView original
Dead Weight On The Cap Table: The Startup Equity Problem Causing Litigation And How You Can Fix It
The standard four-year founder vesting schedule can leave departed founders with large equity stakes, complicating financing and control, and prompting costly litigation aimed at reclaiming shares. Guest author David Siegel, a partner at Grellas Shah LLP, shares ways startups can reduce these risks.