Key Terms
Buyback clause
Legal agreement governing a founding team member's exit before harvest; covers compensation and dispute resolution.
Nondisclosure agreement (NDA)
Prohibits sharing proprietary information with outside parties.
Noncompete agreement
Prohibits working for a direct competitor during and after employment for a specified period.
Fast-paced tech venture
Open spaces, flexible hours, ad hoc collaboration Compliance-heavy venture: structured processes, regulated access, form
Code of conduct
Formal document guiding ethical behavior aligned with company values and culture.
Recommendations for ethical culture
Zero tolerance for abusive behavior, lying, discrimination, and harassment. Subtle ongoing misconduct (intimidation, abu
Gantt chart
Bar chart mapping tasks against time intervals; identifies dependencies and sequences.
How to build one
1. Each team member independently lists their tasks 2.
Escalation of commitment
Continuing a failing course of action due to emotional investment rather than rational analysis.
Fail-safe points
Pre-defined triggers that prompt the entrepreneur to assess whether the venture can be saved.
Hubris
Overinflated belief in one's ability to control outcomes.
Burn rate
Cash outflow exceeding cash inflow; rate at which a venture depletes available cash.
Brainstorming
Free flow of ideas without judgment. More ideas = higher probability of identifying the real problem.
Mind map
Center node is the problem, branches are possible causes, sub- branches go deeper. Add visuals and color.
Address before launch
What happens if wildly successful? What happens if it fails?