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The Founder Prenup

founder-prenup

Use before starting a company with co-founders, when bringing on a new co-founder, or annually as a relationship health check to prevent the 65% of startup failures caused by co-founder conflict

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The Founder Prenup

Overview

A set of critical discussion topics for co-founders to align on before starting a company (or to revisit periodically). Designed to prevent the 65% of startup failures caused by co-founder conflict.

Core principle: Assume nothing. If you act based on your values and they act based on theirs, you'll think they're acting strangely—but they're just being themselves.

The Alignment Checklist

┌─────────────────────────────────────────────────────────────────┐
│                    FOUNDER PRENUP CHECKLIST                     │
├─────────────────────────────────────────────────────────────────┤
│                                                                  │
│  ☐ VALUES CLARIFICATION                                         │
│    List top 3-5 core values and compare.                        │
│    (Excellence vs. Work-Life Balance?)                          │
│                                                                  │
│  ☐ VISION OF SUCCESS                                            │
│    Define the end game. (IPO? Acquisition? Freedom?)            │
│    One wants massive venture outcome, one wants "small shop"?   │
│                                                                  │
│  ☐ CONFLICT STYLE                                               │
│    How do we argue? (Seething in silence? Exploding?)           │
│    How quickly do we need resolution?                           │
│                                                                  │
│  ☐ DECISION PROTOCOL                                            │
│    When we disagree, who decides?                               │
│    (Vote? CEO final? Domain expert?)                            │
│                                                                  │
│  ☐ CULTURE DEFINITION                                           │
│    Results-driven vs. Family-feel?                              │
│    Speed vs. Consensus?                                         │
│                                                                  │
│  ☐ OPERATING STYLE                                              │
│    Communication preferences and pet peeves.                    │
│    Working hours expectations.                                  │
│                                                                  │
└─────────────────────────────────────────────────────────────────┘

When to Use

TimingPurpose
Before incorporationFoundational alignment
When adding co-founderPrevent future conflicts
AnnuallyRelationship health check
During tensionStructured de-escalation

Red Flag Misalignments

TopicCo-founder ACo-founder BRisk
End GoalIPOLifestyle bizCritical
Work Style80hr weeks40hrs maxHigh
DecisionConsensusDictatorialHigh
ConflictAvoidConfrontMedium

Common Mistakes

  • Assuming alignment because you're friends
  • Avoiding the conversation because it feels awkward
  • Not revisiting as the company evolves

Real-World Example

Two co-founders realized too late: one wanted a massive venture outcome, the other wanted a small shop where they knew everyone's name. The painful split could have been avoided with this conversation upfront.


Source: Alisa Cohn (Executive Coach, Thinkers50 Top Startup Coach) via Lenny's Podcast

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