Founding Team Archives • ROCK CENTER STARTUP GUIDE

Underwater snapshot of woman alone after diving into the deep end of a pool. Symbolizes being a solo-founder in business.

Going Solo: Founding a Startup without a Co-Founder

Anecdotal evidence suggests that being a solo founder carries more risk than co-founding a startup. Hind Hobeika discusses her reasons for not adding a co-founder and provides ways to rethink the critical decision of having a partner or going solo.

3-tiered layer cake with white frosting, upside to illustrate layering value when structuring founder equity

Layering Value—A Different Way of Dividing Founder Equity

Lara Hodgson, co-founder and CEO of NOW Corporation, shares how she and her partners assign value to founder contributions as they change over time and allocate founder equity iteratively.

Graphic of blackboard showing handwritten words related to how to think about co-founder equity splits

Co-Founder Equity Splits—Ways to Approach Allocations

How you divide equity reflects your values, directly impacts your co-founder relationship, and influences how your team and investors perceive your startup. Read more to learn methods for dividing equity that align with your values and can minimize conflict between founders.

graphic of 3 people seated around a table, discussing topics before coming to an agreement

3 Topics to Discuss before Writing a Founders’ Agreement

You found a great co-founder. When should you formalize your relationship? You may be tempted to draft a founders’ agreement to demonstrate trust in the partnership, but before you make a legal commitment, make sure you’re aligned with your co-founder in 3 critical areas.

Key Terms to Include in a Founders’ Agreement

A poorly-constructed agreement often leads to founder conflict which can kill your startups. We can’t promise that your founders’ agreement will prevent all founder conflict. But we can provide a framework that will help you avoid common mistakes and equip you to handle conflict.

Graphic image showing circle divided in half, indicating common mistake in structuring equity splits among co-founders.

Structuring Equity Splits to Mitigate Co-Founder Conflict

Before you begin discussing how to divide equity, the smartest thing you can do is to build in mechanisms to make your agreement dynamic. Learn the benefits and drawbacks of common methods.

Should You Add a Co-Founder?

Having a co-founder dilutes your equity and authority. When does adding a co-founder add more value than hiring an executive with similar skills? Understanding the unique role a co-founder plays can help you determine if and when you need one.

Man and woman seated at conference table, writing a formal founders' agreement

Reasons to Write a Formal Founders’ Agreement

Research shows that establishing a founders’ agreement prematurely often generates founder conflict—a leading cause of startup death. Can writing a founders’ agreement help you mitigate future conflicts and save your business? Before you rush into an agreement, understand the underlying mechanics and learn how to customize them to strengthen your co-founder relationship.