Unifying Divisions: Loop's Mission to Preserve the Planet

The case focuses on the initial startup team and Founders’ agreements. In March 2018, Sanchali Pal proposed renegotiating the informal founders’ agreement and equity split she and her co-founders had drafted the previous spring. They had been working together for over a year to solve one of the most complex and urgent problems of our time—global warming. Their company—a technology platform that enabled users to track and improve their carbon footprints on their smartphones in real time—had grown from their individual passion to combat the looming climate crisis.
In the past year, their approach had been validated multiple times at different national clean energy competitions. But beneath external success, internal frictions threatened the team. Differing expectations and overlapping roles and responsibilities sparked frustrations between the co-founders and Pal began spending a considerable amount of time mediating their disagreements instead of focusing on the business. The case ends as the co-founders are meeting to discuss 3 core issues: 1) How to re-divide equity—what changes should they make to their original agreement? 2) How to establish clear roles, titles, and decision-making rights so that they could function effectively as a team. 3) How to allocate spending cash. Each grappled with key questions: Did they still trust one another? Did they feel respected? Could they renegotiate an agreement in a way that everyone could accept?