
Dan Brecher
Counsel
212-286-0747 dbrecher@sh-law.comFirm Insights
Author: Dan Brecher
Date: April 27, 2015
Counsel
212-286-0747 dbrecher@sh-law.comCiting ongoing disputes involving Snapchat, Yik Yak and Tinder, the article suggests that the booming tech industry is particularly prone to feuding founders. Several years ago, Facebook’s woes played out in the courtroom and on the big screen.
In many cases, the young entrepreneurs are so excited to bring their idea to market that they shun the typical formalities of forming a new business. As the article highlights, money is usually at the center of the dispute, whether it involves hitting it big or going bust.
Unfortunately, hoping for the best and failing to plan for the worst can have significant legal and financial consequences. In many cases, start-ups waste valuable time and money hashing out disagreements over each business co-founder’s responsibilities and financial rewards.
While it may seem tedious to address all of the above issues at the outset, having a written agreement in place can avoid a lot of legal headaches down the road. These initial discussions and negotiations also can prove of value for providing insight to the parties as to their ability to get along and grow the business cooperatively.
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