Today’s Tip: Co-founder agreements

Make sure before bringing on co-founders (regardless of who they are) you have a solid agreement. Further more I highly recommend having a vesting period and a cliff to protect yourself. Here are the basic core elements to think about. But be sure to seek legal advice (I am not a lawyer) 1. Ownership Structure: This specifies how equity is divided among the co-founders and what happens to a co-founder’s shares if they leave the company. 2. Roles and Responsibilities: Clearly defines the duties and expectations for each co-founder. 3. Decision Making: Outlines how decisions are made, including votes required for major decisions. 4. Conflict Resolution: Procedures for handling disagreements among co-founders. 5. Capital Contributions: Details regarding any initial capital that co-founders are contributing and future contributions expectations. 6. Compensation and Distributions: How and when co-founders will be paid or allowed to take profits from the company. 7. Vesting Schedule: Terms under which co-founders earn their equity, typically over time to ensure commitment to the company. 8. Intellectual Property: Assigns any relevant IP to the company and establishes rules for any future IP created. 9. Non-compete and Confidentiality: Restrictions on co-founders from engaging in competing businesses and obligations to keep company information confidential. 10. Exit Strategy: Guidelines for what happens if a co-founder wants to sell their shares, the company is sold, or if a co-founder passes away. Let me know if I missed anything