They were friends.
He met the startup event. It was built quickly. I raised faster.
It was the technological brain. Deal with growth.
Together, they built, loud, and sacrificed.
Today, they do not speak.
The council was to mediate. Legal notifications were exchanged. The company did not survive.
What was the start of the startup was not suitable for the market, competition or burning.
He was The absence of the founder’s agreement.
Most startups do not explode.
They slowly retreat – from the inside out.
In my league as a file Franks Financial DirectorI worked with more than 250 founders – some of them on their way to a height of $ 10 million, while others pick up the pieces after painful repercussions.
The same pattern remains emerging:
The founders avoid the structure when they are optimistic.
They need it most When things become complicated.
The founder’s agreement is not related to lack of confidence.
It comes to work protection when emotions undertake the decision -making process.
Allow me to show you what it looks.
When things go well – greed begins
The product strikes PMF.
Large VC lands.
Revenue jumps. Start your running on the map.
Suddenly:
- “I do more, I want more stocks,” says one of the founders.
- The other says, “We have agreed 50-50. This is not fair.”
- Someone suggests a rental that threatens the role of the other.
- There is a maximum schedule of $ 10 million – and there is no clarity in control.
It worked with an emerging company where the company expanded the 5X range per year.
But the founders were not clear in decision rights.
There is no plate structure. No CEO/COA discrimination. There is no tie.
By the time chain, investors appeared – they could see tension.
Growth does not heal the imbalance. He – sheHer amplification.
When things get worse – the blame begins
The traction slows down.
I cut salaries.
One founder is still grinding for 14 hours. The other is … no.
Now, it becomes personally.
- “It is no longer committed anymore.”
- “He sacrificed more than you.”
- “You want to maintain your property rights but don’t appear.”
I have seen this revealing destroyed calls, back chats, and stumbling in the meeting room.
The founder who once said, “We will always discover that,” They are now connected to their lawyer.
There is no agreement = There is no floor to stand on.
You cannot return the stocks.
You cannot reset the rights of decision.
You cannot remove the co -founder without performance.
What is worse – the team sees cracks. Spiritual drops. Walking investors. Customer notification.
AllTwo people did not put their expectations on paper.
Silent killers: What are the founders never talking about
Here is what most of the foundations of the diodes are discussing – until it is too late:
- Who is really the CEO?
- What happens if one person wants to leave?
- Can any of us start something on the side?
- Do we have to agree on every decision?
- What if one of us was burning?
These are not legal questions.
They are Preamble Questions.
And when you avoid it, create Unnamed expectations.
This is where you are born.
I once worked with a company where both founders assumed silently that they were the final decision makers.
For 18 months, they worked in parallel.
Then they collided – severely.
The council had to intervene. Get away. The other did not recover the morale.
The founders do not fall on the percentage. They fall imagine.
“But we are friends. We trust each other.”
Each founder told me that This means.
Each of them was forbidden when the relationship turned.
It was not betrayal. It was a drift.
Life has changed.
The pressure was built.
Predictions diverged.
And because nothing was written, everything has become a discussion.
The founder’s agreement is not when things go well.
It is your seat belt when things disrupt … and always crash somewhere.
What is a feeling when there is no agreement
- You negotiate the roles in the middle of the delivery of the product.
- You are talking about stock splits while negotiating with investors.
- You make employment decisions under emotional pressure.
- You are Googling “How to Remove Participant Founder” at 2 am.
- You whisper the frustration of your advisor instead of speaking frankly to your partner.
This is not the strength of companies.
You do not need legal protection.
Need Emotional insurance.
You need something that says:
- Here who we are.
- Here is how we work.
- Here is what we agreed – in a clear, calm and emotional language.
- Here’s what happens if one of us leaves, breaks confidence, or simply changes the paths.
Do not write a founding agreement because you think there is something wrong.
You write it because if there is something Dothe The work is worth staying on it.
Final thought: The agreement is not yours. It’s for the company.
If your vision deserves construction, this deserves protection.
If your relationship is strong, it can survive difficult conversations.
If your company is growing, it needs more than chemistry – it needs clarity.
Do not wait for friction.
Do not wait for funding.
Do not wait until resentment appears.
Write it. Sign it. Go ahead with freedom.
Because the founder’s agreement does not kill momentum –
This allows your company to expand without collapse.
About the author
Keshor Dasaka Legal accountant and a financial manager fractures with more than 250 founders across India, Southeast Asia, the United Kingdom and the United States. It helps startups to navigate in governance, financial systems and collect donations – before chaos cost them shares, confidence or control.
Learn more in https://kishredasaka.com
