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Founder Agreement Lawyer in Delhi

Essential legal protection for co-founders - vesting, IP, roles, and exit

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Co-Founder Agreement Services

Protecting founder relationships and startup interests

A Founder Agreement (Co-Founder Agreement) is a critical document that defines the relationship between co-founders. It covers equity split, vesting schedules, roles, IP ownership, decision-making, and exit provisions - preventing disputes that could kill your startup.

Key Clauses in Founder Agreement

📊

Equity Split

Fair distribution based on contribution, role, and commitment

Vesting Schedule

Standard 4-year vesting with 1-year cliff

🎯

Roles & Responsibilities

Clear definition of each founder's duties

💡

IP Assignment

All IP created belongs to the company

🏃

Founder Exit

Buyback, ROFR, and exit mechanisms

⚖️

Dispute Resolution

Arbitration and deadlock resolution

Standard Vesting Schedule Explained

🎯 4-Year Vesting Period

Founders earn their equity over 4 years of continued service

⏰ 1-Year Cliff

No equity vests in first year. If founder leaves before 1 year, they get nothing

📈 Monthly Vesting

After cliff, equity vests monthly over remaining 3 years

🏃 Accelerated Vesting

Full vesting upon acquisition or termination without cause

Why Your Startup Needs a Founder Agreement

Prevents co-founder disputes
Protects company IP from departing founders
Essential for investor due diligence
Clear equity vesting prevents free-riding
Defines decision-making authority
Provides exit framework for departing founders

Frequently Asked Questions

Is a founder agreement legally binding?

Yes, a properly drafted founder agreement is legally binding and enforceable in court.

What happens if a founder leaves early?

Unvested equity is forfeited. Company has ROFR on vested equity at fair value.

What is a cliff period?

Minimum period (usually 1 year) before any equity vests, preventing short-term founders.

Do I need a founder agreement for 2 co-founders?

Yes, especially important for 2 founders to avoid deadlock and define decision-making.

Can we change the agreement later?

Yes, with unanimous consent of all co-founders through an amendment.

What is the cost of founder agreement?

Starts from ₹15,000. Free consultation available.

Starting Up with Co-Founders?

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