What is Dispute with a co-founder over equity?
Nexa Consultancy | Startup & Finance Glossary
Equity disputes between co-founders are common and can destroy a startup. They often arise from a lack of clear, documented agreements at the outset.
Startup Example: Two 50/50 co-founders have a major disagreement. Without an SHA detailing a dispute resolution mechanism, the company is paralyzed and unable to make any decisions. No investor will touch a company in this state.
Drafting robust founder agreements is a key part of our Corporate Law services.