ON FOUNDER DISPUTES, 
FALLOUTS & BUILDING TRUST 
CARLOS EDUARDO ESPINAL 
@CEE | @SEEDCAMP
THE FOUNDATION OF ALL RELATIONSHIPS IS 
trust
THE FOUNDATION OF ALL DISPUTES IS A 
LACK OF TRUST
THE 8 PILLARS OF TRUST ARE: 
| 
CLARITY, COMPASSION, CHARACTER, 
COMPETENCY, COMMITMENT, CONNECTION, 
CONTRIBUTION, AND CONSISTENCY 
| 
*‘THE TRUST EDGE’, DAVID HORSAGER
STARTUPS = AMBIGUITY. 
THAT “CAN” BE OK, BUT YOU SHOULD STILL 
TRY TO PURSUE CLARITY.
SIX ACTIONS TO HELP CREATE AN 
ENVIRONMENT OF TRUST
CREATE A STRONG & 
CONSISTENT CULTURE
CLEARLY DEFINE ROLES 
RASCI - RESPONSIBLE, ACCOUNTABLE, 
SUPPORT, CONSULTED, INFORMED
CREATE ACCOUNTABILITY
COMMUNICATE FREQUENTLY
HAVE A PLAN FOR HOW 
THINGS SHOULD FAIL 
GRACEFULLY 
FOUNDER’S COLLABORATION AGREEMENT
IF THINGS GO SOUR, TAKE 
ACTION QUICKLY TO RE-ORGANIZE
WHAT IF TRUST IS BROKEN? 
HERE ARE 5 OPTIONS TO DEAL WITH IT
OPTION 1 - COMPLETE RECONCILIATION AND 
RE-ESTABLISHMENT OF TRUST BETWEEN 
FOUNDERS
OPTION 2 - ONE FOUNDER TAKES THE 
LEADERSHIP HAT AND THE OTHER(S) A 
MORE OPERATIONALLY DEFINED ROLE
OPTION 3 - THE FOUNDERS JOINTLY AGREE TO 
BRING ON A NEW LEADER INTO THE 
ORGANIZATION
OPTION 4 - THE OFFENDING (OR OFFENDED) 
FOUNDER LEAVES THE COMPANY
OPTION 5 - THE FOUNDERS JOINTLY AGREE TO 
SHUT THE COMPANY DOWN
INVEST IN BUILDING AND KEEPING TRUST, IT 
WILL GO FURTHER THAN ANY OTHER TYPE OF 
INVESTMENT

On Founder Disputes, Fallouts, and Building Trust