Founders Agreement

What is Founders Agreement?

A Founders Agreement locks in the key terms between co-founders — equity split, roles, vesting schedules, IP assignment, exit rights, and decision-making — before the company is incorporated. It prevents the most common startup disputes and gives investors confidence that the founding team is aligned.

The single most important document a founding team should sign before writing a line of code or registering a company. A Founders Agreement (sometimes called a Co-Founders Agreement) covers the division of equity and what happens to it if a founder leaves, each founder's role and commitment, how decisions are made, what IP each founder is contributing, and how disputes are resolved. Without it, a departing co-founder walks away with a permanent equity stake, a disagreement over roles can deadlock the company, and IP created before incorporation can remain personally owned. Investors conducting due diligence expect to see a Founders Agreement that includes a vesting schedule (typically four years with a one-year cliff) and an IP assignment clause that vests all startup-related IP in the company.

How It Works

1. 1

   Founder workshop

   We walk through the key terms — equity, roles, vesting, IP — and help the team align before anything is drafted.

2. 2

   First draft

   A draft agreement is prepared covering all agreed terms. We flag industry norms where the team has not yet decided.

3. 3

   Review and negotiation

   Each founder reviews independently and raises any concerns. We facilitate alignment on outstanding points.

4. 4

   Execution

   The signed agreement is executed by all founders. Where the company is not yet incorporated, it is signed in individual capacity and novated to the company on incorporation.

Fees