Legal & Compliance
Co-Founder Agreement
A legal agreement between co-founders establishing equity splits, roles, vesting, IP ownership, and departure terms.
A co-founder agreement formalizes the relationship between startup co-founders, covering equity allocation, vesting schedules, roles and responsibilities, decision-making authority, IP assignment, non-compete provisions, and terms for founder departure. While often overlooked in the excitement of starting a company, the absence of a co-founder agreement is a major red flag for investors and a common source of startup-destroying disputes.
In Practice
Two co-founders sign an agreement: 60/40 equity split (reflecting different commitment levels), 4-year vesting with 1-year cliff, the CEO has final say on business decisions, the CTO on technical decisions, and departing founders must sell unvested shares back at cost.
Why It Matters
Co-founder disputes are among the top reasons startups fail. A clear agreement prevents misunderstandings and provides a framework for resolving disagreements before they become existential.
Related Concepts
Further Reading
Angel Syndicates Explained: How They Work and When to Join
A complete guide to angel syndicates and SPVs — how they're structured, what carry and fees you'll pay, the pros and cons vs. direct investing, and how to evaluate syndicate leads.
Angel Investing 101: How to Start Investing in Startups
A practical guide to entering the world of startup investing — from accredited investor requirements and minimum check sizes to finding deal flow and understanding the legal basics.
What a Series A Process Actually Looks Like
The Series A is where fundraising gets real — partner meetings, deep diligence, and term sheet negotiations. Here's a realistic week-by-week breakdown of what to expect.
Term Sheet Explained: Every Clause Founders Must Know
Term sheets are dense, jargon-heavy, and consequential. Here's a founder-friendly breakdown of every major clause and what it means for your company.
Newsletter
The VC Beast Brief
Join thousands of founders and investors. Every Tuesday.
VentureKit
Ready to launch your fund?