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>"Best to have a genuine agreement up front, and keep it fresh." Seems to me that's what happened in this situation, and they ended depending on the good will
by tatsuke95 14y ago
>"Best to have a genuine agreement up front, and keep it fresh."
Seems to me that's what happened in this situation, and they ended depending on the good will of co-founders.
Where as, had they simply dissolved the relationship with the first business and started anew, we wouldn't talking about this.
- ColinWright 14y agoKnowing when to dissolve a "previous business" is really hard. And it's even harder if you don't have formal or semi-formal arrangements in place from the start. You get to what is effectively (to you) a new business, and the early founders, now no longer involved, can start saying - "But part of that is ours." You asked: " ... why on earth is there a stringent corporate structure and equity doled out years before there is even a concrete idea or tangible business?" ... and I answered. You have it to avoid the problems of not knowing what everyone else believes. Formally dissolving the previous business would have been the right thing to do, but even then, having the formal structure definitely helps.