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Crafting a Founder Agreement at HealthCraft Case Solution & Answer

This Case is about HEALTH

PUBLICATION DATE: December 07, 2012 PRODUCT #: 813101-PDF-ENG

The three creators of HealthCraft are about to craft their founding deal and divide the equity among themselves. Doubt lingers over each member’s future contributions – is the team to formulate an effectual and long-lasting split? Ever since advisor Kevin Rumsfeld conceived of the notion for HealthCraft, he’d worked resolutely to start developing the business by recruiting a gifted co-worker to assist with promotion and fundraising, along with a junior member of one of his project teams to help him assemble the merchandise. All three had been working on HealthCraft part time for the past couple of months, giving from private savings to construct a prototype. What should they contain in the deal, and should they structure their equity split?

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