HOW TO AVOID NASTY EARLY STAGE BREAKUP!
Sep 01, 2021 3:43 pm
Hello , Let me also use this opportunity to wish you the best that the Month has to offer.
In today's email, let us quickly look at how to avoid nasty early stage breakup in your startup.
I'm sure you know that starting any kind of partnership with someone is like getting married.
while some marriages last, many others fall by the way side with some doing so quite too early in the business.
So, here are some of the ways to avoid nasty Co-founder break up in your Startup...
First, understand that, there will always be conflicts so long as you are in a Co-founder relationship with other people.
Whether the conflict is resolved and how it is resolved is a function of the rules and clauses that you have in place in your founders or shareholders Agreement ( Hopefully you have one).
If you are unable to amicably resolve the conflicts or disputes between you and your partners or Co-founders, a break-up is almost inevitable.
Trust me, Early-stage break-up can really be very nasty.
in most cases, it literally cripples the business.
This is why I pity Founders who focus all their attention on product development and going to the market without paying attention to the legal aspect of their business.
1. Ensure that every Intellectual Property ( IP) related work created by the team is actually owned by the Company regardless of the creator.
You can do this through a formal Assignment of Intellectual Property Assignment Agreement (AIPAA)
2. Ensure that all shares duly are vested over a 4 year period with a one year Cliff.
Never ever issue out equity without a vesting clause or Agreement.
Please note that an Ex-Cofoudner may still have some rights in the Company, so you want to make sure that you speak with an experts if you are not sure how to legally protect yourself.
At the Legal Vault Academy, Our sole Objective is to help you move from idea stage to Launch stage while still protecting yourself and your business legally.
The program kicks of today.
But if you are serious about protecting yourself and your business legally, you can still do a quick rush in to join as at the academy.
To your #LegalSense.
