IdeasMine
I
Global·66d ago
Startup Guides
Free

How to Fire a Cofounder When You Have To

What you'll learn The legally clean, ethically sound process for parting ways with a cofounder — the conversation nobody wants to have. Why it matters Most startups die from NOT firing the wrong cofounder. Learning to do this well saves the company. The playbook 1) Try mediation first — a founder-friend, an advisor, or a formal mediator (₹5,000-15,000 in India). 2) If unfixable, refer to your Founders' Agreement (this is why you signed one). 3) Vesting cliff kicks in — unvested shares return to the company treasury. 4) Offer a fair exit package — 3-6 months salary equivalent if cash allows. 5) Sign a mutual release + non-disparagement agreement (₹10,000 lawyer fee). 6) Announce internally with grace, externally with brevity ('X is leaving to pursue new opportunities'). Common mistakes Doing it over WhatsApp. Trying to fire without a Founders' Agreement (chaos). Talking badly about them publicly (reputation lasts). Next action If you're already thinking about this, book a call with a startup lawyer this week. Don't Google-lawyer this one.
0

Discussion (0)

Sign in to join the discussion.
No comments yet — be the first.