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