Our client, a co-founder of an early-stage tech start-up, came to us with a serious problem. He was experiencing significant trust issues with his co-founder. Frequent disagreements and growing concerns over the security of confidential information were straining their relationship and jeopardizing the future of the company.
In our initial conversations, we listened carefully to our client's concerns. It became evident that the root cause of the trust issues was the absence of formal agreements outlining the roles, responsibilities, and expectations of each co-founder.
Surprisingly, we discovered that there was no Founders Agreement in place. This lack of formal structure left critical aspects of the business undefined and vulnerable to conflict.
To address these issues, we proposed drafting two key documents: a Founders Agreement and a Non-Disclosure Agreement (NDA). These documents would provide the necessary framework to clarify roles and protect sensitive information.
We thoroughly drafted the Founders Agreement, ensuring it included crucial clauses such as Equity and Ownership Structure, Roles and Responsibilities, Decision-Making and Voting Rights, Intellectual Property (IP) Assignment, and an Exit Strategy and Dissolution plan.
With both agreements drafted, we facilitated a review and signing process, ensuring both co-founders were on the same page. This created a formal, legally binding framework for their business operations.
The new agreements provided a clear framework, outlining the expectations and responsibilities of each co-founder. This significantly reduced the potential for future disagreements.
By defining roles and establishing a structured decision-making process, the co-founders were able to align on their start-up's vision and goals. This alignment fostered a renewed sense of unity and collective ambition.