Beyond Founder’s Agreements: The Cofounder “Prenup”
As any experienced entrepreneur, investor or business educator will assure you, a Founders Agreement is essential to your company’s success. This legally binding contract will outline business structure, ownership percentages, operational control, rights and obligations, among other things. It should be advised and executed by an attorney. In addition—and perhaps even more importantly—cofounders must outline their relationship beyond the legal parameters. According to best-selling author and Harvard Business professor Noam Wasserman, conflict among cofounders causes 65% of the failures among high potential startups. Avoid this pitfall by discussing and documenting how you will navigate challenges that fall outside the Founder’s Agreement. What...
