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    Founder Agreements: The Conversations You Need to Have Before Day One

    StartupsFoundersEquity

    Anthony Clemenza, Founding Partner

    Admitted in New York, 2009 · nearly twenty years in practice

    · Updated · 9 min read

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    Co-founder disputes are among the most common reasons startups fail.

    Essential Topics

    1. Equity split and vesting: How is ownership divided, and what happens if someone leaves?
    2. Roles and decision-making: Who has final say on what?
    3. Commitment levels: Is everyone full-time? What outside activities are acceptable?
    4. IP assignment: Is all relevant IP being contributed to the company?
    5. Exit scenarios: What happens if the company is acquired, one founder is fired, or you disagree on direction?

    The Process Matters

    These conversations are uncomfortable. That is exactly why they matter. If you can’t work through disagreement before launch, it won’t get easier once the stakes are higher.

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