How to Break Up With Your Co-Founder

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According to Noah Wasserman, an entrepreneurship professor at the University of Southern California Marshall School of Business, 10 percent of co-founders end their relationship within a year of starting a business and an additional 45 percent breakup within four years.

1. What does your partnership agreement say?

Pro Tip: Common law, depending on where you incorporated, may define the separation if there is no founder agreement, but seek legal advice regarding that.

2. How much capital did each founder put in?

Unlike equity, capital is cash — and that is worth something.

3. What does a transfer process look like to you?

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Angel investors have even been known to call previous co-founders to see if they should invest in a startup. So any bad feelings about the separation process can come back to bite you in the ass.

Source: Stanford Social Innovation Review

4. Are you willing to dissolve the company?

5. Do you need lawyers or a neutral third-party?

Some last things to think about:

Who am I & why should you listen to me?

If you enjoyed this article, offer up some 👏🏾👏🏾👏🏾 s

Have a co-founder dispute that you need some help with?



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