Corporate Governance, Stock Options & Founders Agreements
The two biggest reasons companies 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 ensure that rules of the game are known beforehand.
We provide advice in structuring and creating vesting arrangements for founders and key employees.