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A founders' agreement is an informal document that outlines the intentions and understanding among startup founders. It covers important aspects such as roles, ownership shares, contributions, dispute resolution, founder departures/additions, and non-competition. Having...

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What is the purpose of a Founders agreement?

The purpose of this founders' agreement is to formalize the intentions and understanding among startup founders. It covers crucial aspects like roles, ownership shares, contributions, and dispute resolution. Use cases include establishing professionalism, organization, and preparedness for potential investors. This flexible document can be adjusted as the business evolves.

What is Founders agreement?

This founders' agreement serves as a foundational document for startup founders, outlining roles, ownership, contributions, and dispute resolution. Demonstrating professionalism and adaptability, this agreement is crucial for attracting potential investors. As the business evolves, the agreement can be adjusted to meet changing needs. Optimize its content for SEO by emphasizing its role in establishing a solid foundation for startup success.

How to create Founders agreement?

These are some of the most important points to include in a founders agreement.

1. Define Roles and Responsibilities

Clearly define the roles and responsibilities of each founder within the startup. Specify contributions, expectations, and decision-making authority.

2. Ownership Share Agreement

Outline the distribution of ownership shares among founders. Address any conditions or vesting schedules associated with ownership.

3. Dispute Resolution Mechanisms

Include effective mechanisms for resolving disputes among founders. This may involve mediation, arbitration, or other agreed-upon methods.

4. Founder Departures/Additions

Establish procedures for handling founder departures or additions to the startup. Address issues related to equity, responsibilities, and decision-making.

5. Non-competition Agreements

Incorporate non-competition clauses to protect the interests of the startup. Clearly define any restrictions on founders' involvement in competing ventures.

Is it safe to use a legal document created by AI?

Over 200 companies trust our product for personalized legal documents, from simple to complex cases. Based on various tests, Our AI produces accurate and compliant results, we are continually striving for lawyer-level quality at an affordable cost for early-stage businesses who cannot afford high lawyer costs. We know some that not everyone trusts AI, in that case we offer an Expert Lawyer review within our product.

Simply email us, and within 24-48 hours, an expert will provide necessary changes and highlight any red flags. Having a legal expert double verify your document, will make sure you are on the safe side and legally secure.

3 Simple Steps to create your First Legal Document with AI


Explain about your business

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Answer some simple and personalised questions

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Your Document is Done!
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Your Lawyer-Grade & Personalised Document is created. As your product changes, Airstrip AI will make automatic changes with just plain text english.

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Answer personalised questions, and have our AI assistant always by your side to help you create an accurate document and create a lawyer-level document within 20 minutes at an affordable cost.

Beginner Lawyer-level quality

Legally Binding

Takes less than 20 minutes

Create this Document for free

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