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

Business

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.)

Register
Organizations: Drexel University
-30-
LEAVE A COMMENT

Advertisement

Here’s who’s pitching at Black Girl Ventures’ Boss Up! competition

Catch a demo of Tern Water’s smart faucet at #HealthyPhilly

Philly’s Overwatch team made it to the playoffs, will face Boston

SPONSORED

Philly

UX, UArts and the importance of human-centered design

Chesterbrook, PA

Deacom

Deacom | Creative Marketing Writer

Apply Now
Chesterbrook, PA

Deacom

EDI Specialist

Apply Now
Philadelphia

Inspire

Associate Product Manager

Apply Now

These 6 teams will vie for $10,000 in prizes from TrafficCast

Brazen Brigade offers women ‘safe place to land’ at PHL Innovation Picnic

This year’s Philly Podcast Festival can be an urgent social forum

SPONSORED

Philly

Pitch to win up to $360,000 in funding at WeWork’s Creator Awards

Philadelphia

Perpay

Product Designer

Apply Now
30 S 15th St #1400, Philadelphia, PA 19102

Inspire

Fall 2018 – Cleantech Connect Project Mentee

Apply Now
Philadelphia

Practice

Director of Sales

Apply Now

Sign-up for daily news updates from Technical.ly

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