Mon to Sat, 10:00 am to 6:30 pm
Home / Insights / Startups

Five clauses every founder agreement should have

Vesting, roles, IP assignment, exit and dispute resolution: settle them early, while everyone is still friends.

Vesting and cliff

Founder shares should vest over time with a cliff. This protects the company if a co-founder leaves early.

IP assignment

Every founder should assign relevant intellectual property to the company. Investors check this in due diligence.

Roles, exit and disputes

Define responsibilities, a decision-making matrix, good and bad leaver terms and a simple dispute resolution path such as mediation followed by arbitration.

This article is general information, not legal or tax advice. Rules and due dates change: please consult a professional before acting.