What is this document?
A co-founder agreement is a binding arrangement between individuals who jointly establish or operate a startup. It typically covers equity percentages, capital contribution, roles and time commitment, vesting schedules, assignment of pre-existing and future IP to the company, non-solicitation, dispute resolution, and what happens if a founder leaves. It complements but does not replace a shareholders' agreement after incorporation.
When do you need it?
- Incorporating a private limited company with multiple founders
- Splitting equity before raising angel or seed funding
- Clarifying roles when one founder is technical and another is business-focused
- Assigning pre-existing IP or side projects to the startup
- Documenting vesting when a founder joins full-time after a part-time phase
Key clauses and elements
- Founders and company — names, roles, and entity details if incorporated
- Equity split — ownership percentages and dilution principles
- Capital and sweat equity — cash contribution and time commitment
- Roles and decision-making — CEO, CTO, board matters, and reserved matters
- IP assignment — transfer of code, brand, and inventions to the company
- Vesting and cliff — earned equity schedule if a founder leaves early
- Exit and deadlock — buyout, drag-along, and dispute resolution
Frequently asked questions
Related documents
DraftPe helps founders generate a structured co-founder agreement without copying foreign templates that ignore Indian company law context. The wizard captures founder details, equity split, responsibilities, confidentiality, IP assignment, and departure scenarios.
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