HomeSituationsOwnership & businessFounder conflict
TN/SIT/13
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.
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 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.
Mediation
The parties decide. The mediator never imposes.
Also used · ConsensualFacilitation
The group decides. The facilitator owns the process.
§ 03The steps
What a good process looks like.
- Agree to talk with an independent mediatorBefore anything else01
- Separate roles from equity questionsThe moment independence enters02
- Brief investors together, not separatelyWhere the work is done03
- 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.
§ 06Related