How do you let go of a co-founder?
How do you let go of a co-founder?
6 Steps to Respectfully Firing Your Co-founder
- Heed the warning signs. The members of a good team like one another.
- Ask your advisers and mentors for council.
- Talk out options with your legal council.
- Check in with advisers again (this is not an easy decision).
- Bite the bullet.
- Be open with your company’s stakeholders.
Can I remove a co-founder?
If you control the board, or can get majority support from board members, you can fire your co-founder from their operating role within the company. Firing someone from their operating role will not delete them from the cap table, their shares are legally their property and must be addressed separately.
What happens if your co-founder leaves Your Startup?
It’s also a good idea to create a founder IP agreement that includes terms that clearly define what happens if your co-founder leaves your startup. This is mainly to prevent a situation in which your co-founder leaves and is in possession of your company’s creations, opening the door to potential competition.
Can I buy out my co-founder?
If your founders agreement doesn’t provide for a vesting schedule, if your cofounder is already fully vested, or if (gasp!) you don’t have an agreement or vesting policy, you’ll need to come up with funds to buy your cofounder out.
How to deal with a co-founder who wants to exit?
There are certain measures you can take early on to help make a co-founder exit situation easier to deal with. Creating a Founder Accord that details founders’ roles and responsibilities is a good way to help prevent future disagreement. You should also make sure to have a shareholder agreement that includes vesting provisions for founder shares.
What should I do if I don’t have a cofounder?
Give them an idea of your plan for keeping the company on track and assure them you will safeguard their investment. Review your business plan. Consider the financial and strategic implications, including whether and how the business will continue without your cofounder.