If you’re launching a startup, it’s so important to learn from others mistakes to not only prevent yourself from going down the same path, but also save yourself a lot of wasted time, money and energy. Snapchat has encountered some legal woes of its own over the years and here’s what you can learn:
Get a Founder’s Agreement in place as soon as possible. Founder disputes are the norm, not the exception, and many disputes could have been avoided had the founder’s hashed out a Founder’s Agreement in the beginning. In Snapchat’s case, a third co-founder filed a lawsuit after Snapchat received funding claiming he came up with the idea for the app and was forced out of the company. He was seeking millions of dollars and ended up settling for an undisclosed amount. Had the Snapchat founders gotten their intentions, responsibilities and expectations documented early on, it may have very well prevented this debacle from happening in the first place.
As a startup, you will face obstacles regularly. Seeking guidance from others and educating yourself on struggles high profile companies have faced will help give you the information you need to prevent you from making the same mistakes.
Tricia Meyer is founder + managing attorney of Meyer Law, a woman-owned, forward-thinking boutique law firm specializing in helping entrepreneurs and technology companies from startups to fortune 500’s with corporate, contracts, employment and intellectual property matters in Technology, Telecom, FinTech, EdTech, AdTech, HealthTech, Internet of Things, Financial Services, Telecom, Social Media, Real Estate, Marketing, Advertising and Healthcare sectors. As an entrepreneur and a lawyer, Meyer has a unique perspective and is a mentor at tech incubators and accelerators across the United States. Learn more at www.MeetMeyerLaw.com and follow us on Twitter @Tricia_Meyer or @LoveYourLawFirm.