AEM 4200 - Dilemmas in Founding New Ventures

Spring. 3 credits. Letter grades only (no audit).

Staff.

The purpose of this class is to increase students’ chances of success in their early stage ventures by helping them avoid common team-related mistakes. We explore specific dilemmas that founders face—decisions that arrive early on, can be uncomfortable, and that need to be made with minimal information—but that can have far-reaching consequences. Whether the founding team stays together, whether the venture achieves an attractive exit, and the extent to which the founder(s) share in those rewards can all be largely determined by early-stage choices.

Outcome 1: Have the ability to assemble an ideal team of co-founders with complementary skills and networks but common objectives.

Outcome 2: Develop skill at crafting founding agreements that balance equity ownership (including dynamic, contingent allocation of shares), roles, decision-making, and intellectual property protection.

Outcome 3: Learn to manage the end-to-end hiring process, from non-vague job descriptions to interview protocols for screening and in-depth interviews, assess references and close offers.

Outcome 4: Manage employees performance and terminate underperformers while avoiding lawsuits.

Outcome 5: Align founding, hiring, and investment choices with your personal preferences for keeping control of the venture vs. accelerating its growth.