Founders agreement

The document setting out equity split, vesting, roles, decision-making and what happens if a founder leaves.

Example

Signed before building anything meaningful together.

Important

The conversation is the valuable part; the document just records it. Founders who avoid the conversation are postponing it to the worst possible moment.

Related terms

• Founder equity split — How ownership is divided between the founders at the start.
• Vesting — Earning your shares over time rather than owning them all immediately.
• IP assignment — A signed agreement transferring ownership of work product to the company.
• Shareholders agreement — The contract between shareholders covering transfers, decisions requiring consent, and exit rights.

Lessons that explain it

• Legal structures and incorporation — Educational, not advice. What the main structures are, why only some can take investment, and when to talk to a professional. (12 min)
• Owning your own product — The single most common thing to derail due diligence. If contractors built part of it without an assignment, you may not own it. (12 min)
• The contracts you will actually need — Founders agreement, employment and contractor agreements, customer terms, privacy policy, NDAs. What each is for, and which ones matter. (12 min)
• The conversation to have before you commit — Fifteen questions that feel awkward now and prevent the disaster later. Have this before any equity is discussed. (15 min)

All 176 terms in the Founder glossary