SaaStr · 2025-03-22 · 438d

The 8-10 Year Founder Commitment Test: Vesting Strategy for Co-Founder Alignment

Jason Lemkin proposes an extended 8-10 year vesting schedule with a 1-year cliff as a commitment test for SaaS co-founders, arguing it better aligns expectations and reduces co-founder turnover. The article suggests that co-founders unable to commit to this timeline should transition to early employee status rather than founder roles.

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Metrics in this report

Co-founder Attrition Rate by Year 5

30%

at least

SaaS co-founders departing by year 5, per Carta

Recommended Founder Vesting Period

8-10years

recommended

Extended vesting schedule for SaaS founder commitment

SaaS Business Building Timeline

7-10years

minimum

Time required to build something real in SaaS

SaaS Legacy Building Timeline

20years

approximate

Time to build something for the ages in SaaS