The Cofounder Rule Book: Insights from AwakenHub’s Online Event

On 18 October, AwakenHub hosted an engaging online event focused on navigating the complex dynamics of cofounder relationships. Moderated by AwakenHub Cofounder Sinead Crowley, the discussion featured insights from Sinead Buckley and Breda O’Regan (Lia Eyecare), Charlene Armour (Axurian.com), and Jo Joyce (Taylor Wessing Ireland). Each speaker brought unique experiences and actionable advice to the session, highlighting the critical do’s and don’ts for cofounding teams.

For AwakenClub members, the full session is available on video playback. Below are some key takeaways for anyone considering or currently navigating a cofounding partnership.

Insights from Lia Eyecare: Sinead Buckley & Breda O’Regan

1. Define the Ideal Cofounder Profile:
   Be clear about the skills and traits you’re looking for in a cofounder before starting your search.

2. Establish Clear Roles:
   Clearly define responsibilities to leverage each person’s strengths effectively.

3. Stay Focused on Your Lane:
   While mutual support is crucial, avoid micromanaging each other’s domains.

4. Leverage a Third Party for Conflict Resolution:
   Have a trusted mediator to address unresolved issues or disagreements.

5. Separate Friendship from Work:
   Maintain boundaries, like using separate phones for work and personal communication.

6. Commit to Showing Up for Each Other:
   Consistency in support builds trust and collaboration.

7. Hold Strategic Reviews:
   Regularly step back from daily operations to align on long-term goals.

8. Use Task Tracking Tools:
   Adopt effective systems to manage workloads and stay organized.

Lessons from Axurian.com: Charlene Armour

Building on Lia Eyecare’s tips, Charlene shared additional advice:

1. Remote Cofounding Works:
   Proximity isn’t a prerequisite for success. Charlene and her cofounder AJ met in person only three times in two years, proving that strong communication is the key to maintaining a healthy working relationship.

2. Transitioning from Investor to Cofounder:
   Bringing an investor onboard as a cofounder can work, though it’s uncommon. When doing so:

   • Reassess the relationship and start fresh.

   • Clearly delineate roles and responsibilities.

   • Resolve existing investor-related agreements before transitioning.

3. Celebrate the Support System:
   A cofounder can be a vital sounding board, sharing the weight of challenges and the joy of wins.

4. Adapt as the Business Evolves:
   Keep reviewing and refreshing agreements and dynamics as the company grows.

Legal Considerations from Jo Joyce

Jo provided essential legal guidance to safeguard and structure cofounding relationships:

1. Ownership Structure & Contributions:
   Clearly document all contributions, including non-monetary ones.

2. Intellectual Property (IP):
   Define ownership of IP brought into and developed by the business, especially in the absence of employment contracts.

3. Decision-Making & Dispute Resolution:
   Agree on a clear process for decision-making and conflict resolution.

4. Plan for Exits:
   Anticipate various exit scenarios and document strategies to handle them.

5. Seek Legal Advice:
   While continuous legal oversight is ideal, ensure agreements are reviewed by legal counsel before signing.

Jo also delved into equity division, conflict management, vested interests, compliance, and relevant jurisdictional frameworks—critical components for long-term success.

Key Takeaway

A cofounder relationship is like any other partnership—it thrives on clarity, communication, and careful planning. By defining roles, planning for potential pitfalls, and seeking legal safeguards, cofounders can build a resilient foundation for their ventures.

To catch all the valuable insights from this session, AwakenClub members can access the full video on the platform. Joining Information here.