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Startup Cofounders
Importance of Founders’ Agreement
for early stage companies
Co-Founders
Group of
Entrepreneurs
Working Together
Co-Founders’
Agreement:
Understanding
between founders
Document Addressing
CoFounders’ Relationship
Rights
Define Rights &
Responsibilities
Co-Founders’
Agreement crucial to
avoid legal pitfalls
Reduced Risks of Disputes
Key Clauses
Shareholding Pattern
Roles &
Responsibilities
Vesting & Lockin
Stock Options
Key Clauses
Issuance of New
Shares
Transfer of Shares
Decision making roles
Exit Strategy
Drafting
Co-Founders
Agreement
1. Make general list
of understanding
2. Engage with
startup company
lawyer
Thank You
Get in touch with Author
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Startup Co-Founders Agreement - Equity Ownership, Investments, Responsibilities, Vesting, Shareholding, Stock Options, Share Transfer and Exit of Founders

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What is Co-Founders’ Agreement?
Document addressing relationship among startup founders by defining their rights and responsibilities.

Why is Co-Founders’ Agreement required?
To avoid legal pitfalls during early stages of startup and ensure proper understanding between cofounders, thereby reducing risk of disputes and misunderstandings.

Key Clauses
Roles and responsibilities
Shareholding pattern, Vesting & Lock-in period
Future Stock Options
Issuance of new shares
Transfer of shares – restrictions and procedure
Decision making process for startup operations
Possible exit strategy for each cofounder or shareholder

Drafting Cofounders Agreement
A general list of understanding between startup founders is prerequisite before drafting agreement.
Noting main points on company’s letterhead can be a good start.
Engaging startup company lawyer to formally draft the agreement is strongly advisable.

Founders shareholder agreement, also known as SHA (stockholders' agreement) includes important provisions for growing startup business to next level. Provides for exit strategy of cofounders without dispute and minimum risk.

Published in: Law
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Startup Co-Founders Agreement - Equity Ownership, Investments, Responsibilities, Vesting, Shareholding, Stock Options, Share Transfer and Exit of Founders

  1. 1. Startup Cofounders Importance of Founders’ Agreement for early stage companies
  2. 2. Co-Founders Group of Entrepreneurs Working Together Co-Founders’ Agreement: Understanding between founders
  3. 3. Document Addressing CoFounders’ Relationship
  4. 4. Rights Define Rights & Responsibilities Co-Founders’ Agreement crucial to avoid legal pitfalls
  5. 5. Reduced Risks of Disputes
  6. 6. Key Clauses Shareholding Pattern Roles & Responsibilities Vesting & Lockin Stock Options
  7. 7. Key Clauses Issuance of New Shares Transfer of Shares Decision making roles Exit Strategy
  8. 8. Drafting Co-Founders Agreement 1. Make general list of understanding 2. Engage with startup company lawyer
  9. 9. Thank You Get in touch with Author

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