Most startups fail

Most startup failures happen at the founders’ agreement stage.

At Falcon Ventures, we’ve worked with several founders to bring research to life and get ventures investment-ready.

The pattern is clear:
Things fall apart when the founders’ agreement is signed — or when it’s about to be signed.

My advice.

Get to the founders’ agreement as fast as possible. Time is the one asset you’ll never recover.

Here’s where founders often get it wrong:

• Shareholding = control

• Once you incorporate, perceptions should change. A larger percentage doesn’t automatically mean power. There are voting rights, different classes of shares, liquidation preferences, and fiduciary duties to consider.

• Directors owe duties to the company — not to each other

Fiduciary responsibilities are real and can be found via Companies House guidance. Incorporation changes the dynamics. Understanding this helps prevent disputes and keeps energy focused on building the business.

• Non vesting = future conflict

In early-stage ventures, value hasn’t yet been created. Vesting keeps incentives aligned, protects the project, reduces friction when things get hard and keeps egos in check.

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