Our Founders Pledge is designed to protect the founders and the company if things go wrong between the founders, which happens more often than you think.
Founders Service Agreement
Create a Founders Service Agreement
Investors are going to be looking for this as part of their due diligence, so if you and your co-founders don’t have a signed Founders Service Agreement in place, now’s the time to do it.
Protect your idea from the start
Avoid disputes over IP ownership down the line. Make sure you have a signed IP Assignment with everyone who’s contributed to your product or idea.
Frequently asked questions
What is a Founders Service Agreement?
This is the employment agreement for founders and each founder should sign one ahead of the funding round. It sets out their obligations, director duties, equity vesting schedule and more.
What’s the difference between a Founders Pledge and Founders Service Agreement?
The Founders Pledge is a lightweight version of the Founders Service Agreement - used by idea stage Companies. You should then migrate to a Founders Service Agreement before you start your first funding round.
I’m not planning to raise funding. Do I still need to sign a Founders Service Agreement?
Yes! Many of the clauses present in the agreement are applicable to companies not taking in external investment e.g. roles and responsibilities, protection of the companies interests, confidentiality clauses, and founder restrictions.
I’m a solo founder, do I need a Founders Service Agreement?
Yes! The Founders Service Agreement is there to protect the company as well as the founding team - and investors will expect to see the warranties, IP assignment, and confidentiality clauses present in the Founders Service Agreement.
Should I create a Shareholders Agreement instead of a Founders Service Agreement?
No need to create a Shareholders Agreement until you get to a funding round. And then you will need to create Shareholders Agreement that replicates many of the terms present in your Founders Service Agreement.
Do all founders need to sign a Founders Service Agreement?
Yes! Founders Service Agreements are individual documents and each member of the founding team will need to sign one.
Should all Founders vest their equity?
Yes! Having the founders equity vested will protect the company, and the rest of the founding team, in the event that a founder leaves. It can be the difference between the Company failing and surviving if this happens! And most investors will insist on founder share vesting anyway.
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