startup squabbles

An old friend popped up on chat today and we got talking about what’s hip and happening in the world of startups — he works for one as well. So I ask him, “What’s hot in startup territory these days?” He responds, “Startup fights.”

Seems co-founders at an IIT Bombay start-up, didn’t name it, are at loggerheads. Another one just outside campus — wont name them because I don’t want to get sued — which is the in media space also has its two young co-founders at each other’s throats. The bone of contention in both cases seems to be sharing of equity stakes.

These are common enough problems with start-up companies and in fact, the earlier they fight and break up, the better. Much like divorce. Both start-ups in this case are not yet venture funded. Funnily, when a start-up is venture funded, fights among founders are less common. Is that because the common enemy is the venture capitalist or because by the time venture funding comes in, the founders are fairly mature and have already thrashed out their creative (or not so creative) differences? Excellent question and I don’t have an answer just yet.