Startup founders need their own version of a prenup. We had 3 teams imagine what they'd put in theirs.
Three startup teams share what cofounders should agree on early, from equity split and domain ownership, to conflict resolution and exit scenarios.
Startup founders often view their cofounders as both partners and friends, similar to a marriage. To ensure a strong partnership, three sets of AI startup cofounders discussed the key conversations to have before founding a company. They highlighted the need to agree on the company's purpose, the level of commitment each cofounder expects, and how to handle a potential split.
The cofounders also emphasized the importance of defining exit scenarios early, such as equity splits, vesting schedules, intellectual property ownership, roles, decision-making processes, and what happens if a founder leaves. They stressed the need to have open conversations about these topics before any issues arise, as conflict is inevitable in a startup.
By establishing clear expectations and decision-making frameworks, cofounders can protect the company and their relationship.
Written by urgent.news from Business Insider's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
