Build Mode is back. This season we’re breaking down what it really takes to build a world-class founding team starting with your cap table, equity structures, and startup compensation strategy.
We kick off with Yuri Sagalov, managing director at General Catalyst and former founder, YC partner, and seed investor at Wayfinder Ventures. Yuri has worked with hundreds of pre-seed and seed-stage startups, and he shares practical advice on how early-stage founders should believe about startup equity, cap table design, investor selection, and compensation structures from day one.
He breaks down:
- The three types of investors (and which one to avoid).
- Why your cap table is part of your team.
- The 20% to 25% seed dilution rule.
- How to split equity with a co-founder.
- How to talk to early employees about risk and compensation.
No matter where you are in your startup journey, this episode will support you obtain the incentive structure right from the launchning.
Chapters:
00:00 – Why your first hires deserve more equity
00:31 – Meet Yuri Sagalov (YC → General Catalyst)
02:12 – Your cap table is part of your team
02:50 – The 3 types of investors (avoid this one)
05:02 – How to split equity with a co-founder
07:55 – How much equity to give early employees
09:37 – How to talk compensation and risk
12:31 – Red flags in formation docs and vesting
18:27 – Advisors for equity? Usually a mistake
20:05 – The 20–25% seed dilution rule
26:03 – The shift to 10-year stock options
34:11 – Don’t scale before product-market fit
39:23 – Final advice: Just start and choose your co-founder carefully
New episodes of Build Mode drop every Thursday. Hosted by Isabelle Johannessen. Produced and edited by Maggie Nye. Audience development led by Morgan Little. Special thanks to the Foundry and Cheddar video teams.
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