Article by Rebecca
A Kacaba, Mathew
Goldstein and Andreea Andrei*
Startup founders frequently set their course for the stars. With
sweeping vision, high spirits and grand plans, what could go wrong?
Unfortunately, plenty. Building a successful company requires a
solid foundation and advance planning to navigate key challenges. A
properly drafted shareholders' agreement can be a roadmap
through the foreseeable and unforeseeable twists and turns
associated with growing a new business (e.g. bringing on new
investors, selling shares, and even unlikely scenarios such as the
sudden death or disability of a founder or key shareholder).
Snapchat's large and very public co-founder dispute
illustrates the point. Snapchat's co-founders were sued by a
former colleague claiming an ownership interest in the billion
dollar company. While the dispute has apparently been settled,
ambiguity over ownership is undesirable for an emerging company
seeking to raise capital and grow.
