Getting together with a friend or two and creating a new business is an exciting time in any entrepreneur’s life. However, Co-Founders are often so busy building and running their new business that they skip a hugely important step, the Co-founder Agreement. A Co-founder Agreement is a contract between Co-Founders setting out the ownership, initial investments and responsibilities of each Co-Founder. This agreement also safeguards you in the case of a dispute, as it can provide protection to show what the co-founder agreed too.
Use this Co-Founder Agreement if:
- You are a co-founder and would like to clearly set out the equity participation in your new business.
What does the Co-Founder Agreement cover?
- Co-Founder details;
- Project description;
- Equity breakdown and initial capital contributions;
- Roles and responsibilities of each Co-Founder;
- Management and approval rights;
- Non-compete, confidentiality and intellectual property; and
- Resignation, dissolution and removal of directors.
Other names for Co-Founder Agreement include:
- Founders Agreement; and
- Hackathon Collaboration Agreement.