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Before you start, create a plan to stop My #1 rule for ventures, especially with friends, is to create an “ejection seat plan” at the beginning. The ejection s

by mch82 7y ago

Before you start, create a plan to stop My #1 rule for ventures, especially with friends, is to create an “ejection seat plan” at the beginning. The ejection seat is designed to save friendships and prevent teams from holding on to ideas too long. Write down a list of milestones that must be achieved in 1, 2, 3, and then every 3 months up to 48 months. Agree that either partner can choose to eject without blame whenever the milestones aren’t met. Agree how much equity will be retained in the event of ejection. Follow the plan. I credit five inspirations for the ejection seat plan. (1) Tim Ferris’ “dreamline” concept from 4HWW, (2) news stories about “golden parachutes”, (3) my friends who learned this with me the hard way because we didn’t do it, (4) the Stripe Atlas guide to founders equity, (5) my friend who helped me validate that it can work.

mch82 7y ago
In the OP situation, where this was not done up front, I encourage you both to read the Stripe Atlas guide to founders equity to ground yourselves in accepted practice and then to have a discussion about what to do. Edit (to add this link): https://stripe.com/atlas/guides/equity https://stripe.com/atlas/guides/equity
ada1981 7y ago
I think the ejection plan is also really good in romantic relationships. If we are committing to each other, what does it look like if one of us decides we don’t want commitment? Do we agree to do couples therapy for a X number of months where X is an agreed upon ratio of time spent together?
- maerF0x0 7y ago
  That's, kind of, a prenuptial agreement. However, these are frequently contested in court. The ejection plan probably will have the same issue. A contract is only as good as your ability to defend it in the court. And if it costs more to defend it than to pay the person off...
  - ada1981 7y ago
    I meant more for the emotional side of things. I really do think an ability to agree to a process you’d go through if you are wanting to leave could be useful.

by mch82 7y ago

mch82 7y ago

In the OP situation, where this was not done up front, I encourage you both to read the Stripe Atlas guide to founders equity to ground yourselves in accepted practice and then to have a discussion about what to do. Edit (to add this link): https://stripe.com/atlas/guides/equity https://stripe.com/atlas/guides/equity

ada1981 7y ago

I think the ejection plan is also really good in romantic relationships. If we are committing to each other, what does it look like if one of us decides we don’t want commitment? Do we agree to do couples therapy for a X number of months where X is an agreed upon ratio of time spent together?

maerF0x0 7y ago
That's, kind of, a prenuptial agreement. However, these are frequently contested in court. The ejection plan probably will have the same issue. A contract is only as good as your ability to defend it in the court. And if it costs more to defend it than to pay the person off...
- ada1981 7y ago
  I meant more for the emotional side of things. I really do think an ability to agree to a process you’d go through if you are wanting to leave could be useful.