Battle of the Founders

Posted by on July 5, 2006 at 9:02 am.

Andrew shared some tough, but valuable founder lessons in his post Key Lessons From Cryptine Network’s Failure. I’ve seen this multiple times, from both sides of the table, and it still surprises me how severe founder disagreements can become when money starts to show up. It doesn’t even require bad people in the mix, just a poorly structured founding agreement/cap table and a few passionate founders who are trying to capture the value they each helped create. Add to this the difference between compensating past contribution and future contribution, and you’ve got a brew that really benefits from outside perspective.

Note, it’s also usually easier to have the tough/equity discussions before money shows up than risking a blow-up in the middle…

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