Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
What it covers
A founders’ agreement documents the things co-founders assume but rarely write down: the equity split, each founder’s role and responsibilities, vesting, how decisions are made, IP ownership (so the code/brand belongs to the company, not an individual), compensation, and crucially the exit terms — what happens to a founder’s shares and role if they leave or are removed.
Why you need it
Most co-founder fallouts come from unspoken, mismatched expectations — and they’re far harder to resolve once money and emotion are involved. A founders’ agreement forces the hard conversations early, while everyone is aligned, and gives a clear reference if disputes arise. Investors also expect it, and clean IP assignment is essential for due diligence. Sign it before significant work or money goes in.
A worked example
Example: three founders sign a founders’ agreement covering a 50/30/20 split, 4-year vesting, who leads what, IP vesting in the company, and buy-back terms on exit. When one later wants to leave, the agreement cleanly governs their vested shares and the IP — no dispute, no stalled fundraise. Startups that skip this often face exactly the conflict it would have prevented. Our team can draft your founders’ agreement.