Which Item(S) Should Be Included In A Founder Agreement

The co-founders of BlackBuck decided not to write a formal agreement from the beginning. However, they took the time to clarify expectations of responsibilities and role allocation. The focus on these decisions has allowed their launch to evolve exponentially. Between July and December 2015, they grew from three sites with three customers to 54 cities with 50 customers and the team grew from 35 employees to 250. In less than two years, they developed a technology platform and set up a network that completely revolutionized India`s truck industry. By the end of 2018, BlackBuck has grown to more than 2,000 sites and has served more than 10,000 customers. What decisions can be made by one person and which decisions need a consensus between the two or the founders? And while all of this is certainly true, you still need to get a founder`s agreement. A founder`s agreement is, like all contracts, because to help you navigate not only in your daily business, but also to help you if things don`t go as planned. Don`t take the step, founder. IP exists in many forms.

Your FA should stipulate that every IP address produced for your start-up belongs to the company, not to the people who developed it. But how did you come to the agreement? There are many ways to make one. One of the best ways to start is to use a template on a site like LegalZoom. It has a user-friendly questionnaire that guides you step by step in the process of creating a contract. In the end, you have a founder contract that is tailored to your business. Here, you determine the percentage of each member`s business – that is. You and your co-founders own. This number can change if people join the company and leave it. If your business is an LLC, you should also know what percentage of each member`s management interest has. This means that you need to determine whether each person is just an owner in an economic sense or whether they also play an active role in management. If the co-founders have different individual skills, the roles may fall organically in your place and you may be tempted to forgo writing a founder`s agreement.

For example, when three co-founders launched BlackBuck in 2015, they shared the roles in Skillset. Everyone agreed to accept a functional lead that matched their capabilities: fundraising, operations and distribution.