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Why Every Founder Needs a Founders’ Agreement
No handshake is strong enough when equity, roles, and IP are on the line. Here is what to lock down early.
Starting a company with co-founders is exciting. But excitement is not a legal framework. A founders’ agreement is the document that turns good intentions into enforceable expectations.
What to cover
- Equity split and vesting. Who owns what, and on what schedule?
- Roles and responsibilities. Who is CEO, CTO, COO? What do those titles actually mean day-to-day?
- IP assignment. The company must own the code, brand, and inventions.
- Decision-making and deadlock. What happens when founders disagree?
- Exit and separation. Buy-back, good leaver / bad leaver, and fair price.
Spending a few hours on this early saves months of disputes later. Use a template, then have a local lawyer review it.
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