Trust is Good. Agreements Are Better.

Amit had the capital. Raj had the product vision. As friends, they agreed to start the business without a Founders’ Agreement leading to no clarity on ownership.

A year later, with funding at the door, came friction.

Who owns how much? Who decides what? All kind of questions started coming up.

Trust turned into tension, and then into a legal fight.

Lesson? A Founders’ Agreement isn’t for when things go wrong but for keeping things right. It defines roles, responsibilities, equity, exits, and decision rights early, while the headspace is clear and the stakes aren’t sky-high.

Takeaway: Don’t rely on memory or friendship. Tailored agreements when executed brings clarity and protects partnerships. Draft it when it’s calm before the storm.