In this long-form post published on LinkedIn Pulse and titled “The Sad Reality of Founders’ Separation”, Einat Katzenell of Katzenell Dimant writes about continuing operations, mitigating value loss and amicable separation, in the unfortunate event startup founders experience a falling out.
I had the pleasure of working with Einat and providing Editorial Services for this piece.
Einat Katzenell is the Founding Partner of Katzenell Dimant and provides strategic and practical legal advice to hi-tech, life sciences and biotechnology entrepreneurs, investors, early stage and mature companies, academic institutions and business initiatives.
From the post: “The Sad Reality of Founders’ Separation”:
“Even though we see these situations often, only few entrepreneurs truly understand the importance of addressing the possibility and implications of separation in the founders’ agreement, and how beneficial it can be to set forth in advance specific mechanisms to address certain aspects of founders’ feud.
When founders, who are the pillars of the company, especially at the early stages, trade cooperation for bickering, it is almost inevitable that operations will come to a halt, business will become paralyzed, and existing and potential investors will grow despaired and discouraged. Under such circumstances the value loss will be considerable, and chances of recovery grim.
When I step into such a situation, my goals are to offer tools and solutions that will enable the company to continue operations seamlessly, to mitigate loss of value, and when possible – help the parties separate on amicable terms.”