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Edition 2027 · effective 1 January 2027

Ownership & business · Founder conflict

The founders built it together. Now they want different companies.

Co-founder conflict is one of the most common reasons young companies fail. Facilitation and mediation help founders agree roles, decision rights or a clean separation, before investors and employees feel it.

§ 01What it looks like

Recognise it early. The earliest moment is the cheapest.

Early signals

What you notice first

Small, and easy to explain away.

  • Founders stop deciding together
  • Each founder has a camp in the team
  • Investors ask who is in charge
  • Equity and vesting become the conversation
What is at stake

What waiting can cost

Usually more than the original issue.

  • The company’s survival
  • The team
  • Investor confidence

§ 02The Neutral route

Usually: Mediation.

Mediation lets founders agree a future, together or apart, on terms they choose.

Human checkpoint. Guidance, not legal advice. You choose the role; the Neutral discloses conflicts and accepts a mandate before any file is shared.

§ 03The steps

What a good process looks like.

  1. Agree to talk with an independent mediatorBefore anything else01
  2. Separate roles from equity questionsThe moment independence enters02
  3. Brief investors together, not separatelyWhere the work is done03
  4. Write the decision rules downSo it holds04

§ 04Prepare and avoid

What to bring. What to leave out.

(Bring)

01

Founders’ agreement and cap table

02

Vesting and leaver provisions

03

Each founder’s view of the future

04

Funding runway

(Avoid)

✕

Using the team as allies

✕

Changing access or passwords unilaterally

§ 05Your version

Every situation is different. Describe yours.

Write in your own words. Leave out names and confidential details.

§ 06Related

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