Agile Partnerships

Frequently asked questions

• What is a founder prenup?

  A founder prenup allows founders to spell out their business relationship in a contract which governs the release of equity based on what people actually bring to the party, as opposed to what they promise to bring. In the event that they part ways, the founder prenup helps founders reach a predetermined outcome.

• Do I need a founder prenup?

  65% of startups fail due to interpersonal tensions within the management team according to a study by Noam Wasserman, a Harvard Business School professor. While the best case scenario involves choosing a founder meticulously by asking the right questions, things can still go wrong. A founder prenup safeguards the business and determines the right rewards based on the founders’ contributions.

• How do Agile Partnerships help?

  Agile Partnerships™ are bespoke equity-based agreements that tie equity rewards to agreed performance milestones. These agreements allow you to gradually release equity to key people (founders and other key employees), based on what they actually contribute. No more worrying about co-founders leaving with a big slice of the pie without fairly contributing to the business. They are most commonly used in the early stages of a business, but can also help when changing course, bringing new people into the company, or planning to exit and handover the company to new management.

• How much equity should I give to my co-founder?

  Dividing equity equally between co-founders might seem like the fairest thing to do, but (ironically) it often breeds inequity, and sometimes, conflict. We’ve heard a few horror stories over the years of founders blindly agreeing to a 50/50 split only to regret it later after the other founder failed to deliver. There’s no one right answer to this. But we have put together a guide and tools to help you work out what’s right for your business. Ultimately, founding teams should base their decision on what each co-founder brings to the table.

• How do Agile Partnerships help me transform my business?

  Even the best planned businesses will sometimes need to change direction. Occasionally a bigger shakeup is required: new goals, new people, new terms.
  
  Agile Partnerships allow you to get everybody aligned, so they know what the equity rewards will be if they deliver what has been agreed.

• What are the main benefits?

  We designed Agile Partnerships based on real business needs. They are being used by UK startups and SMEs to ensure that people are rewarded fairly, and to avoid any sketchy scenarios. Here are the main benefits:

  Fair and proportionate
  Participating partners know the rules of the game, and what it takes to win.

  Embrace fluidity
  Use Agile Partnerships to make your equity structures less rigid.

  100% transparent
  Everybody knows what is expected of them, and the potential rewards.

  Support good leavers
  Sometimes people need a change of lifestyle, and you can help them adjust.

  Define terms and milestones

  You set the conditions and the equity allocation on a per person basis.

  Improve your company culture
  Delivery-based rewards and shared goals bring people together.

  Bespoke for your business
  Agile Partnerships are a customisable framework that will fit like a glove.

  Incentivise future growth
  Allow people to claim a slice of the action from this point forward.

  Embrace generational change
  Transfer equity to rising stars in a fair, performance-based way.