Situation
First-time entrepreneur, co-founder and CEO of the company was facing an opportunity of a lifetime: Take their advanced 3D molecular modeling software knowledge and apply it to the advancement of biochemical solutions. She, along with her other co-founder, applied and was accepted to a top-tier accelerator in Europe. The company had great technology and had started to generate sales by servicing a select group of early customers.
Challenge
The co-founder CEO, and her co-founder and Chief Science Officer, had been at odds about which path for growth to follow, which made strategic planning difficult and compromised the rapid development of client solutions. As the CEO, she wanted to address these issues but was seeking a neutral third party to help her assess the best approach to take.
Approach
Enrique advised the CEO to establish clear business goals and business metrics covering various aspects of the business. He also recommended implementing his proprietary accountability framework, called Masterly, to surface the main problems that were acting as a wedge between her and her co-founder. He assisted the CEO on high-level negotiating strategies as well as in identifying potential mentors and investors in the U.S.
Results
After a series of heart-to-heart conversations, informed by real, practical data about their interactions, the client was able to negotiate a reasonable buy-out of her co-founder, mitigating any impact it had on the company’s burgeoning operations.
Founder-to-founder Tip
Before launching a new venture, founders should have deep conversations about their goals and expectations. Alignment from the start is key to maintaining balance and avoiding future conflicts. A crucial step in this process is drafting a shareholder agreement that clearly defines exit conditions.