Reitler Kailas & Rosenblatt LLP’s Post

Hey there, fellow founders! Did you know that a whopping 55% and above of business failures are due to co-founder clashes? Yikes! But fear not, there's a game-changing solution: the mighty Co-founders Agreement. Imagine dodging those awkward conflicts right off the bat with a rock-solid agreement in hand. No drama, just smooth sailing. Here's the scoop: many businesses fall into the template trap, snagging generic Memorandum and Articles of Association or partnership deeds that are about as exciting as watching paint dry. But wait, there's more! 1. Reverse Vesting: Ever heard of a safety net for your shares? Picture this: if a co-founder jets off before clocking in the agreed term, they kiss goodbye to a chunk of their shares. Fair and square, right? 2. Pre-defined Transfer Prices: Say no to pricing puzzles. Lay down the law on how shares change hands—whether it's based on revenue, profit multiples, or a mix of both. No haggling necessary. 3. Decision Making Protocols: Who's the boss in a clash? Settle the score on who holds the golden ticket when decisions get dicey. Clear rules, zero drama. 4. Intellectual Property Ownership: Keep your brainchildren safe. Decide who gets dibs on your genius ideas if the business hits the rocks. Protect your brainpower! 5. Non-compete Agreements: Don't let ex-founders rain on your parade. Set the ground rules for who can't dip their toes into similar waters post-split. Keep the playing field level. So, let's spice up your Co-founders Agreement with these game-changers! Don't leave your success up to chance—lock in clarity and protection today.#startups#cofounders#enterpreneurship#startupsuccess#

What's the value of good advice? Let me share a story... Right before I was about to start SponsorUnited, a VC offered to be my first investor, valuing the company at over a million dollars. I nearly fell out of my chair when I received the formal seed offer and I was giddy as I told my wife that I couldn't believe someone believed in me and my idea that much and thought it was that valuable. It was one of the most thrilling moments I can remember. Once I calmed down, I realized that I should get a lawyer to look at the document, as I knew nothing about investor documents. On it's surface, my lawyer told me that there was nothing egregious or out of the ordinary with the offer, but then he deadpanned: "You do realize that you're giving up control of your company before you've even started, right?". I was confused, as I thought they were taking 20% equity and I'd have the remaining 80%, but then he proceeded to give me an education on board seat control, my own vesting schedule and several other potential issues that could come up as a result. The wind literally left my sails and I felt so deflated, as this investment would literally help me start the company and alleviate all the nerves I had in risking my own savings at that point in my life. Gradually, I realized that the offer was truly a validation that I stumbled upon something of value and if they believed in me that much, I should believe and bet on myself, so I took my own savings and bootstrapped the company. In the long run, that little piece of advice by Jesse Nash helped me ultimately walk away from that deal, bootstrap and raise investments at over 100x the original valuation. Lawyers cost money, but you know what costs more money? Not having great advice! To take it full circle, I had the honor of being invited by Reitler Kailas & Rosenblatt LLP to their amazing VC's on Tees event at the The Sagamore Resort in Lake George to speak alongside some incredible founders and leaders like Michael Lazerow, Kass Lazerow, Joe Gagnon and Dave Carvajal. #investment #law #startup

This should be an interesting panel for angel investors and startups alike.

Some thoughts on imposter syndrome and normalizing growing your business to include co-founders and partners. Please read about the company, Once Upon a Farm, and how they scaled from under $1M to $100M and their latest raise of $52M. Finally, let’s normalize investing in women-owned businesses. 🤝

𝐻𝑎𝑙𝑓 𝑓𝑜𝑢𝑛𝑑𝑒𝑟𝑠, ℎ𝑎𝑙𝑓 𝑎𝑛𝑔𝑒𝑙𝑠. 100% valuable conversations 🙌 Last Friday, Amela, together with Croton Capital and STUDIO LEGAL Rechtsanwälte, co-hosted a 𝐋𝐞𝐚𝐫𝐧 & 𝐌𝐞𝐞𝐭 𝐛𝐫𝐞𝐚𝐤𝐟𝐚𝐬𝐭 ☕. The room was split evenly between angel investors and first-time founders. The focus? Legal insights and meaningful discussions. Founded and led by Anna Fedulow, Croton Capital is a highly diverse international business angel syndicate focused on bringing value to impactful early-stage tech companies with underrepresented founders. Yamila Eraso, Partner at Studio Legal, shared crucial advice on: - Legal structures for raising capital - Different types of legal instruments like CLA and SAFE - Pros and cons of each instrument Turns out, understanding these early on can save a lot of trouble later. We also opened the floor for discussions on expectations: - What founders expect from angel investors - What investors look for in founders It was enlightening to hear both sides. Reporting, for instance, emerged as a key tool for building trust and leveraging networks. One story stood out—a former founder shared a cautionary tale about the pitfalls of neglecting these legal aspects early on. This event reinforced our belief that: Collaboration is the way to go. We’re committed to creating spaces where valuable relationships and insights can flourish. If you want to join us or learn more about our partners, check the links below. #Entrepreneurship #VentureCapital #Networking #Amela #WomenFounders

The Growth of the Business will always be limited or progressed by the belief and operational effectiveness of the Leader to the organization. Have you asked yourself today what You could shift personally to transform your Business? https://lnkd.in/g5ysaY5U #BusinessEssentials #10X #LeadershipWorkshop

Never let imposter syndrome hold you back from achieving your goals. “At the time, Once Upon a Farm was earning less than $1 million in annual revenue; today its yearly haul is “well over $100 million,” Foraker says. That growth has been accelerated by more than $100 million in funding, according to PitchBook, most recently a $52 million Series D round led by CAVU Venture Partners.” Link to article in comments. *** I’m sure it helps that Jennifer Garner came on as a co-founder, along with other successful founders in the same industry. 👉 Business partnerships, collaborations, and co-founders coming on later in the game should happen more often and be normalized. And so should investments in female-owned businesses. #impostersyndrome #entrepreneurmindset #successmindset

No one’s going to take care of your baby (company) except YOU. As a solo entrepreneur, there is no backup. You’re a ONE-MAN SHOW in charge of building your own brand. On the flip side, mega funds have 100s of employees building their brand for them. Zach Coelius, Managing Partner at Coelius Capital, believes big VCs swear by the principle of committee decision-making infrastructure. And yet, these investments have come by betting on crazy, non-conformist, and outlandish ideas. Tune in to the latest installment of CLIMB by VSC as Zach and Jay explore how the boldest risk-takers are often the ultimate winners: https://lnkd.in/dZ9kiDQr

Is refund due for fired co-founder not meeting responsibilities?   #StartupDrama #CoFounderIssues #LegalAdviceNeeded Hey fellow founders! 🚀 Have you ever found yourself in a situation where a co-founder just isn't pulling their weight? 💼💔 I recently had to let go of a co-founder due to underperformance, and now I'm facing the dilemma of whether or not to refund him his initial investment. 🤔💸 Here's a quick rundown of my situation: - Co-founder agreed to certa... Source: https://lnkd.in/g_WQKTyp #mymetric360

Is refund due for fired co-founder not meeting responsibilities?   #StartupDrama #CoFounderIssues #LegalAdviceNeeded Hey fellow founders! 🚀 Have you ever found yourself in a situation where a co-founder just isn't pulling their weight? 💼💔 I recently had to let go of a co-founder due to underperformance, and now I'm facing the dilemma of whether or not to refund him his initial investment. 🤔💸 Here's a quick rundown of my situation: - Co-founder agreed to certa... Source: https://lnkd.in/grAWQJyg #mymetric360