Corporate governance and founders agreements

Corporate governance and founders agreements

CORPORATE GOVERNANCE AND FOUNDERS AGREEMENTS

corporate-governance-and-founders-agreementThe two biggest reasons startups fail are running out of money and founder conflicts. The initial team that grows out of the two (or few) of you will determine everything the startup does, and equally importantly, how it does it. If both of you want to be the CEO and you agree all major decisions are made “as equals”, you are likely signing up for eventual conflict.  In the early days it might feel like decisions come easily and you and your co-founder are well aligned so you think this structure works.  Without a clear sense of who can call the shots on what, and who can make the final-final call if needed, you are signing up for a messy future. Transparent and clear corporate governance rules help as they ensures that rules of the game are known beforehand. We provide advise in structuring and creating vesting arrangements for founders and key employees.