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Founders agreement template

Founders’ agreement: A founders’ agreement sets out how co-founders split equity, roles and decisions, how their shares vest and what happens if one of them leaves.

Last reviewed 6 November 2026 · 6 clauses · General guidance, not legal advice

Upload yours for a review and e-signature, or save it as a team template.

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When to use a founders’ agreement

  • Before or right after incorporating a startup
  • When a new co-founder joins
  • Before raising investment

Founders agreement template: clause-by-clause outline

Sample starting wording for each clause. Replace the text in [brackets] with your details.

  1. Roles

    [Founder A] will lead [product]; [Founder B] will lead [commercial]. Each will work full time on the company.

  2. Equity

    Shares are split [x]% / [y]%.

  3. Vesting

    Each founder’s shares vest over [4] years with a [1]-year cliff.

  4. IP assignment

    Each founder assigns to the company all IP created for the business, including work done before incorporation.

  5. Decisions

    Major decisions need agreement of all founders until a board is formed.

  6. Departure

    If a founder leaves, the company may buy back unvested shares at [nominal value].

What to check before you sign

  • Is pre-incorporation IP assigned to the company?
  • Do vesting terms match what investors will expect?
  • Is there a plan for deadlock?

How to send a founders’ agreement for e-signature

  1. Draft or upload it. Use the outline above with your own wording, upload an existing document, or save it as your organisation’s template.
  2. Check it against your playbook. Points outside your positions are flagged, and approval rules route it to Legal when needed.
  3. Send it by email. Signers get a plain-language review and a secure link, sign on any device in the order you set, and can suggest changes as tracked changes.
  4. Keep the signed PDF. Everyone receives it with a certificate of completion, and key dates go to Upcoming with reminders.

Founders agreement template: frequently asked questions

What is founder vesting?

Founders earn their shares over time, so someone who leaves early does not keep the full stake.

Do founders need an agreement if they are friends?

Yes. It prevents disputes and investors will ask for it in due diligence.

Is an electronically signed founders’ agreement legally binding?

In most countries, yes. E-signatures are recognised for commercial contracts under laws such as the ESIGN Act (US), eIDAS (EU), the Electronic Communications Act (UK) and the Information Technology Act (India). econtracts.ai adds a certificate of completion with each signer’s identity check and a fingerprint of the signed content.

Can I get a founders’ agreement I received reviewed?

Yes. Upload it to econtracts.ai and you get a plain-language review: key dates, money and points to check, each quoting the clause it comes from.

Related contract templates

Shareholders agreement templateShareholders’ agreementIP assignment agreement templateIntellectual property assignment agreementPartnership agreement templatePartnership agreement

This outline is a starting point for discussion, not legal advice, and it is not a complete contract. Laws differ by country and sector; have a qualified lawyer review contracts that matter.