Co-Founder Agreement

Co-Founder Agreement: Create a Verified Founders' Agreement

A verified co-founder agreement is a contract between the founders of a new business. It records each founder's role, equity and contributions, how shares vest, who owns the intellectual property, how decisions are made and what happens if a founder leaves. Robot Lawyer drafts the agreement from your answers, for the law of the country or state you choose. On the Verified plan, a legal professional checks it before you sign.

CONTENTS

What Is a Co-Founder Agreement?

Founders often start with a handshake. A co-founder agreement puts the key decisions in writing early, while everyone agrees, so that a later disagreement or departure doesn't put the business at risk. Investors also expect founders to have settled these questions.

When Do You Need One?

• Starting a business together
  Before you incorporate, or as soon as possible after.
• Splitting equity
  Agreeing who owns what and how it vests.
• Before raising investment
  Showing investors that ownership and IP are clear.

What's Included in Your Agreement?

• Roles and titles
  Each founder's responsibilities and time commitment.
• Equity and vesting
  Each founder's shares and how they vest over time.
• Contributions
  Cash, assets and intellectual property each founder brings, with their value.
• Intellectual property
  Assignment of founders' work to the company.
• Salaries and decisions
  Any founder pay, and which decisions need everyone's agreement.
• Leavers and restrictions
  Good and bad leaver terms, and any non-compete for exactly the period you choose.

Companies and Founders (UK Only)

In the UK, once you form a limited company, the founders' rights also depend on the company's Articles of Association and any Shareholder Agreement. A co-founder agreement works alongside them and should be consistent. Post-departure restrictions must be reasonable to be enforceable.

How It Works on Robot Lawyer

1. Answer the questions
   Tell us about the business, the founders, the equity and how you will work together.
2. Generate your agreement
   We draft a complete co-founder agreement.
3. Get it verified
   On the Verified plan, a qualified legal professional checks the agreement within 24 hours and makes amendments where needed. See how our documents are verified.
4. Sign it
   All founders sign and keep a copy.

Co-Founder Agreement FAQs

What is founder vesting?

Vesting means a founder earns their shares over time, often over four years with a one-year cliff. If they leave early, they keep only the vested shares.

What is a good leaver and a bad leaver?

A good leaver leaves for an acceptable reason, such as ill health, and usually keeps more value. A bad leaver leaves early or for misconduct, and may have to sell their shares at a low price.

Do we need a co-founder agreement if we have a shareholder agreement?

They overlap. A shareholder agreement covers all shareholders; a co-founder agreement deals with founder-specific issues like roles, vesting and IP.

Create a Verified Co-Founder Agreement

Start your business on solid ground. Related documents: Founders Agreement, Shareholder Agreement, Articles of Association and Business Plan.