Our ADR services address the full range of disputes that arise in the startup and scale-up lifecycle, including but not limited to:
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Co-founder disputes – Conflicts between co-founders are among the most common and most destructive disputes in the startup world. These disputes may involve disagreements over equity splits, vesting schedules, roles and responsibilities, company direction, decision-making authority, and the circumstances of a co-founder’s departure. When a founding team fractures, the entire company – its culture, its fundraising prospects, and its ability to execute – is at risk. ADR provides a confidential, efficient process for resolving co-founder disputes before they destroy the business. Mediation is particularly effective because it allows co-founders to address the personal and emotional dimensions of their conflict – trust, perceived fairness, differing visions – alongside the legal and financial issues, and to craft solutions that preserve value for all stakeholders.
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Venture capital and investor disputes – Conflicts between startups and their venture capital or angel investors arise at every stage of the funding lifecycle. Common issues include disputes over term sheet interpretation, valuation disagreements, anti-dilution adjustments, liquidation preference calculations, board composition and control, information rights and reporting obligations, pay-to-play provisions, and allegations of breach of fiduciary duty by directors appointed by investor groups. These disputes are intensely confidential — any public leak can damage the company’s fundraising prospects, market reputation, and employee morale. ADR provides the private, expert-driven forum that venture capital disputes demand, with neutrals who understand cap tables, preferred stock mechanics, and the governance dynamics of VC-backed companies.
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Equity and stock option disputes – Disputes over employee and advisor equity are pervasive in the startup ecosystem. Issues include contested vesting acceleration (single-trigger vs. double-trigger), disputes over the exercise price or fair market value (409A valuation) of stock options, clawback of unvested equity upon termination, disagreements over the terms of restricted stock purchase agreements, and disputes between departing employees and the company over post-termination exercise windows. These disputes frequently arise in the context of terminations, acquisitions, or funding rounds, when the financial stakes of equity ownership become concrete. ADR provides a rapid, confidential process for resolving equity disputes without disrupting the company’s operations or signaling instability to investors and potential hires.
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Intellectual property ownership disputes – In the startup context, IP ownership disputes are existential. Common conflicts include disagreements over whether a founder’s pre-incorporation work product belongs to the individual or the company, disputes over the scope and enforceability of invention assignment agreements, claims by former employers that technology was developed using their resources or trade secrets, and disputes between co-founders over the ownership of jointly developed IP. These disputes can block fundraising, delay product launches, and even prevent acquisitions. ADR provides a confidential, expedited process for resolving IP ownership questions with neutrals who understand technology development, startup IP practices, and the commercial implications of IP disputes for emerging companies.
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Accelerator, incubator, and SAFE/convertible note disputes – Conflicts arising from the terms of accelerator or incubator participation agreements (equity stakes, mentorship obligations, exclusivity clauses), and disputes over the conversion mechanics, valuation caps, discount rates, and MFN provisions of Simple Agreements for Future Equity (SAFEs) and convertible notes. These instruments are the building blocks of early-stage finance, and their terms – while seemingly straightforward – can generate significant disagreements when a priced round triggers conversion or when multiple SAFEs interact with each other and with the company’s cap table. ADR provides a fast, cost-effective process for resolving these disputes before they complicate a funding round or exit.
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Employee and key hire disputes – Startups and scale-ups depend on their ability to attract and retain key talent, and disputes with employees can be particularly disruptive. Issues include wrongful termination claims by early employees, disputes over the terms of employment agreements and offer letters, misclassification of workers as independent contractors, disputes over the enforceability of non-compete and non-solicitation agreements, and claims of discrimination or harassment in the fast-paced, high-pressure startup environment. ADR offers a confidential, efficient forum for resolving employment disputes without the public exposure that can damage a startup’s employer brand and recruiting efforts.
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Customer and commercial contract disputes – As startups scale, their commercial relationships grow in number and complexity – and so do the disputes. Common issues include breaches of SaaS subscription agreements, service level agreement (SLA) failures, software licensing disputes, API access and data-sharing disagreements, disputes with channel partners and resellers, and conflicts with enterprise customers over customization, deliverables, and payment terms. ADR provides a rapid resolution mechanism that avoids the reputational damage and customer relationship destruction that public litigation causes – particularly critical for startups that depend on a small number of key customer relationships.
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M&A and exit disputes – As scale-ups approach exit – whether through acquisition, merger, or IPO – disputes frequently arise over valuation, earn-out structures, representations and warranties, escrow and indemnification terms, management retention and rollover equity arrangements, and the allocation of sale proceeds among founders, investors, employees, and option holders. These disputes are high-stakes, time-sensitive, and intensely confidential. ADR – particularly expedited arbitration and expert determination — provides the rapid, private process needed to resolve exit-related disputes without jeopardizing the transaction or exposing sensitive deal terms to public scrutiny.
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Board and governance disputes – As startups grow and take on outside investment, board composition and governance become increasingly complex – and increasingly contentious. Disputes may involve conflicts between founder-directors and investor-directors, disagreements over strategic direction, challenges to board decisions on financing or M&A transactions, information rights disputes, and allegations that directors have breached their fiduciary duties. ADR provides a confidential, expedited process for resolving governance disputes that, if left unresolved, can paralyze decision-making at a critical growth stage.
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Technology development and outsourcing disputes – Startups frequently rely on third-party developers, development agencies, and offshore teams to build or scale their technology. Disputes may arise over project scope and deliverables, code quality and ownership, milestone payments, delays, and the enforceability of work-for-hire or IP assignment provisions in development agreements. ADR provides a technically informed, efficient process for resolving these disputes with neutrals who understand software development practices, agile methodologies, and the commercial realities of technology outsourcing.
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Data privacy and regulatory compliance disputes – As startups scale, they face increasing regulatory obligations – including compliance with GDPR, CCPA, HIPAA, PCI-DSS, and industry-specific regulations. Disputes may arise with customers, partners, or regulators over data handling practices, breach notification obligations, consent mechanisms, and the adequacy of privacy and security programs. ADR provides a confidential, flexible forum for resolving these disputes without the public exposure that regulatory litigation or enforcement actions create.
