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.
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