What Is Founders Agreement?

The written accord of all Founders is essential to approve any extra investment within the Company from any party, as well as Founder, and to issue any equity securities or rights convertible into the Company's equity to any party therein.

Advantages of A Founders Agreement

Clears the Air
Many matters tend to go undiscussed between co-founders. This agreement provides the first team members the chance to discuss these crucial matters, clearing any doubts and allowing for a better relationship.

Defines Roles
This provides members the chance to clarify their role within the company and also gives each or all founding member a better understanding of what the other founding members do.

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