Forgetting all this, the normal structure of a company is constructed

 In such a way that there is always a backup in case a person from a managerial role exit. That backup would be a person who acts on behalf of the co-founder when he is on leave or a person who takes the decision in case of his absence.

2. “Endure the present & the future shall be bright”

The process of a co-founder leaving the startup is very hard for the company, this is the time where communication with your fellow employees is crucial. This drastic change in management needs to be properly conveyed to them to build transparency and trust.

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The same information must be conveyed to the stakeholders, investors and your key stakeholders. The investors need to be regularly updated with the important events in your startup, and a co-founder exiting is a huge update that changes the dynamics of the business.

This instils a sense of trust with the investors, and they might even try to help you find a suitable replacement or give you advice on your next step.

A co-founder leaving a company is not similar to a regular employee leaving, if he is a board member, the whole board needs to vote on his termination and there are several other complications that may pop up.

In order to avoid that, it is better to do the process in the presence of an attorney. They will help you with the best co-founder exit strategy with the best legal advice.

A legal attorney is also needed when determining the state of equity entrusted to the co-founder. This solely depends on the agreement which “should” be made before you divide the shares.

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Either they can keep or sell the stocks. Most of the time company repurchases the shares from them before they leave. Prior notice will be issued to the exiting co-founder to inform them that the company is willing to repurchase their unvested shares.

3. “A cure for the void”

When a founder decides to leave, the remaining co-founders must devise a strategy to help the company through that phase. Selecting the right person to fit those shoes might be challenging in some cases as that is the value provided by their predecessor.

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Every company starts their search for a replacement internally first. A person who is familiar with the company and its processes will save the company time and resources. As the role played by a co-founder is leaned towards the managerial point of view, a familiar face in that position would be comfortable for everyone.

If the situation arises when you can’t find the right person for the job internally, external hiring is the only option. Here the co-founder who is about to leave the company will serve the notice period training the new employee.

But bringing a new talent takes time and will depend on many factors. The hiring process will take more time than a regular employee acquisition considering the importance of the shoe they have to fill.

Takeaway

A co-founder leaving your company is not the “inevitable snap” of Thanos; it is just another hurdle in your startup journey.

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The way you handle the situation is the key to a prospective future. The key takeaway you can get from this is blog is that you should always have a backup plan and be ready for any unforeseen circumstances.

We know these are the type of situations when your mind presses the panic button. But as a co-founder, your team is looking up to you, and it’s your duty to be the bedrock for them.

Keep in mind what you have learnt through this blog, and never try to do everything alone. Look for help when you need it.