Founders Agreement

A Founders’ Agreement is a crucial legal document that outlines the rights, responsibilities, and equity distribution among the co-founders of a startup. It serves as a foundational roadmap, establishing clear guidelines on critical aspects like initial contributions, decision-making processes, intellectual property ownership, and conflict resolution mechanisms. By formally defining roles and expectations from the outset, this agreement helps prevent misunderstandings and disputes that can arise as the company grows. It typically includes provisions for vesting schedules, exit clauses (such as buy-sell agreements), and confidentiality, ensuring the long-term stability and success of the venture. Investing time in a comprehensive Founders’ Agreement is essential for building a strong and resilient entrepreneurial partnership.