Founders’ Agreement Overview
It is important for a company’s founders to have an agreement among
themselves even before creating an entity. Founders’ agreements are the
product of conversations that should take place among a company’s founders
at the early stages of formation rather than later in the life of a company.
The goal of these conversations is to have an open and honest discussion
about the attitudes, fears, and aspirations of individuals involved with the
startup, so as to minimize the likelihood of debilitating surprises as the
company continues to evolve.
This module includes two documents:
1 A Conversation Guide. Answering these hard questions now will help
you and your co-founders avoid personal conflicts in the future.
2 A Model Founders’ Agreement. A Founders’ Agreement is a contract
that a company’s founders enter into that governs their business
relationships. The Agreement lays out the rights, responsibilities,
liabilities, and obligations of each founder. Generally