Article · 9 min read

Ask an Investor: How do I fire my co-founder?

Katherine Hague and Roger Chabra · BetaKit Free Intermediate

Two working VCs answer the exact question, and they answer it like operators, not lawyers: run the split through a neutral advisor or board member instead of founder to founder, lean on the vesting agreement so the leaver keeps only what vested and the rest returns clean, and lock IP rights and a written separation agreement before you say a word. It also names the failure case you are trying to avoid: no vesting means you are negotiating a buyout or suing, which is why acting sooner is cheaper.

  • Put a mediator (advisor, board member, or investor) in the room instead of handling the firing founder to founder, to minimize collateral damage to the company
  • Vesting is the clean mechanic: standard four-year vest with a one-year cliff means an early departure walks away with little or nothing, no negotiation needed
  • Secure IP rights to the departing founder's work and get a signed separation agreement before anything is announced, so there is no later litigation
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The question it answers

  1. How do I fire or exit a co-founder without destroying the company?

Read with it

  1. This is the India-specific mechanics your answer demands. It lays out both routes: a co-founder who resigns (company files Form... ClearTax Article · 10 min read Change in Directors: Appointment, Resignation and Removal ClearTax editorial team
  2. A VC opens its own portfolio: 35 of 100 companies had a founder leave, most inside two years, so a split is normal, not a... Icehouse Ventures Article · 8 min read 35% of founders break up. Here's what we've learned. Icehouse Ventures
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