Founders Collaboration Agreement: For idea stage startups

Founders Collaboration Agreement: For idea stage startups

This Founder Collaboration Agreement is intended as a seed document that can be used as a framework for a more complex business and legal relationship. Starting a new company requires inspiring early co-founders to join you in your efforts and then quickly establishing an environment of trust where everyone works hard and fairly shares the upside of any success.

To that end, we launched the Founder’s Collaboration Agreement which is designed for a newly formed team to agree on what each founder’s shareholding should be as well as how to make sure that each founder puts a continued effort throughout the lifetime of the company in order to keep their equity stake.

The Founder Collaboration Agreement is suitable for use between two or more individuals that have agreed to work together in order to develop a business concept and/or technology. The agreement envisages that each individual shall be a co-founder of a newly incorporated company and sets out how the share capital of that company will be split. The agreement also includes share vesting provisions to cover a situation if a founder leaves the company during the vesting period. Importantly, the agreement also obliges each co-founder to transfer any and all intellectual property that has been developed as part of the collaboration to the company.

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