Founder’s Agreement

Founder’s Agreement is a legal document outlining the roles, responsibilities, equity ownership, and other terms agreed upon by the founders of a startup.

Benefits

A Founder’s Agreement prevents misunderstandings between founders. It helps startups run smoothly by making everything clear from the start.

Frequently Asked Questions

What is a contract between founder and co-founder?

A contract between a founder and co-founder is a Founder’s Agreement. It lists their duties and how much of the company each person owns.

What is the difference between a founder`s agreement and a partnership agreement?

A Founder’s Agreement is for startup founders. It covers roles and equity. A partnership agreement is for business partners and focuses more on operations and profit sharing.

What is founder equity vesting?

Founder equity vesting is a plan where founders earn their shares over time. This ensures they stay committed to the startup for a longer period.

Key Takeaway

A Founder’s Agreement is crucial for startups. It helps founders agree on important matters early on, avoiding future problems.