Essential Business Agreements Every Startup Must Have Before Funding
The Co-Founder Agreement
Many promising startups collapse due to internal co-founder disputes regarding equity split and division of labor. A co-founder agreement clearly schedules vesting timelines (e.g. 4-year linear vesting with a 1-year cliff), intellectual property transfer details, and exit procedures for departing co-founders.
Vesting and IP Assignments
Ventures must show investors that every piece of software code, design mockup, and company logo is legally owned by the corporate entity and not personally by individual lines of code or external freelance designers. Secure written IP Assignment agreements are mandatory.
Employment & Proprietary Information Protection
Standard labor contracts must restrict personnel from sharing trade secrets, private database entries, or proprietary technology with competitors through strict Non-Disclosure Agreements (NDAs).
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