While the rate of divorces among U.S. married couples has reportedly declined for decades, it doesn’t seem like the same is true for business divorces among startup co-founders.
When a team of two or three co-founders enlists my help to form a new startup, I invariably suggest that they earn their equity over time (“vesting”). Vesting often creates a shared incentive to stay in order to earn all of your equity over time–the “golden handcuff” effect. If–as the odds suggest–a co-founder departs, it can really help because the company will likely need that equity to give to whomever will fill his or her shoes.