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ARTICLE · 26 JULY 2016

Don't Make Founders' Equity Even

WilmerHale
WilmerHale
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WilmerHale

WilmerHale

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Sometimes I think about replacing the table in my office with a sofa and a box of tissues. I'm a lawyer, but sometimes I feel like a therapist. When startup founders sit down with me to hash out equity splits and trust and commitment issues, their tempers sometimes flare.

United StatesCorporate/Commercial Law

NOTE: This article originally appeared on TechCrunch.com on July 24, 2016.

Sometimes I think about replacing the table in my office with a sofa and a box of tissues. I'm a lawyer, but sometimes I feel like a therapist. When startup founders sit down with me to hash out equity splits and trust and commitment issues, their tempers sometimes flare. Uncomfortable silences ensue. Feelings get hurt, and tears sometimes fall.

This is an awkward and uncomfortable step in the process of forming new ventures, and there's no question that many founders would rather bypass all this potentially messy stuff. In fact, many do. They form their companies, assure one another they're all in this together and, as a gesture of good will, divide their equity equally.

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