Avoid the legal pitfalls of cofounder beefs - Technical.ly Philly


Nov. 15, 2017 9:53 am

Avoid the legal pitfalls of cofounder beefs

At “Swipe Right to Issue Equity,” hear from Drexel’s Entrepreneurial Law Clinic on the dos and don’ts of bringing on a cofounder.

The event is happening Nov. 29.

(Photo by Flickr user Stacy Welsh, used under a Creative Commons license)

Attorney Steve Rosard, who runs Drexel University’s Entrepreneurial Law Clinic, is no stranger to cofounder fights.

“It seems that every semester our clinic has one or two clients that have an issue with this,” the lawyer tells Technical.ly. “They have multiple cofounders who got together over a cool idea, maybe worked on it together at a startup weekend and maybe found each other at a cofounder dating event or website, and agreed to start a business and split up ownership.”

If all goes well, the business grows and retains its leadership. But Rosard said not too long after the company’s set up often a cofounder will drop — out of boredom, over opposing views or to take a job etc. — leading to a squabble over the company’s equity. What then?

“A problem that could have been simple to deal with under a proper founders’ agreement with vesting, is one that takes significant time, attention and (if we weren’t a free service) legal fees to cure.”

On Nov. 29, Rosard and the Clinic’s student lawyers will talk vesting, equity splits, deadlock resolution mechanisms and other legal moves aimed at protecting a startup from cofounder fallout. The event, aptly titled Swipe Right to Issue Equity, is free and will happen at Drexel’s Thomas R. Kline School of Law.

(Here are more tips on cofounder scouting via the Technical.ly Toolkit.)

Organizations: Drexel University
Already a member? Sign in here


The Philly Tech Week 2019 calendar is filling up. Here’s what you need to know

Philly Tech Week 2019 will kick off with a festival during Old City’s First Friday

Thursday: What went down at CES 2019?



Pitch to speak at Comcast Labs Connect’s data security conference


Vistar Media

Software Engineer

Apply Now


Operations Specialist

Apply Now
Philadelphia area

Chariot Solutions

Mobile Developers

Apply Now

6 lessons on growing digital audience from the team behind Traffic Think Tank

For a glimpse into the future, look at aerial robotics

At Founder Factory, entrepreneurs will share lessons for the year ahead



How teamwork is setting the standard for data standardization at Pinnacle 21

Chesterbrook, PA


Front End Developer

Apply Now
Malvern, PA


Intermediate Software Developer

Apply Now
Malvern, PA


Full – Stack Engineer-Java

Apply Now

Sign-up for daily news updates from Technical.ly Philadelphia

Do NOT follow this link or you will be banned from the site!