A founders agreement is one of the most important documents a startup will ever sign โ yet many entrepreneurs rush through it or skip it entirely. Here are five clauses you absolutely cannot afford to overlook.
1. Equity Split & Vesting
Clearly define each founder's ownership percentage and implement a vesting schedule to protect the company if a founder leaves early.
2. Roles & Responsibilities
Document each founder's role, decision-making authority, and time commitment to avoid conflicts later.
3. IP Assignment
Ensure all intellectual property created by founders is assigned to the company, not retained individually.