Founders | Co-Founders Agreement

Founders | Co-Founders Agreement

If you are or have founded a company with multiple members (founders), then it is absolutely important and necessary to have a Co-Founders Agreement. Ignore this step and you are potentially looking at some serious litigation. The most famous and recent example is Facebook.

What should you have in your conversation with your Co-Founders?
  • The Basics: Who are the Founders? 
  • How is the Company being divided between them?
  • What are the roles and responsibilities of each Founder?
  • Early Budget, and Resources 
  • NDAs? 
  • What happens if a founder leaves the Company?
  • How much time will each Founder have to commit to the Company? 
  • Stock buyback if a Founder leaves? Vesting period? Buy-Sell Agreement?
  • How will day to day decisions be made?
  • What is the vision of your Company and long term goals?
  • Consequences if a Founder is unable to deliver per expectations?

This is not a complete list; there are other industry and business specific questions that need consideration.