Co-Founder Agreement Template

A co-founder agreement defines the relationship between startup co-founders, including equity distribution, vesting schedules, roles and responsibilities, decision-making processes, and departure scenarios. It's one of the most important documents a startup can have.

Without a co-founder agreement, disputes over equity, control, and intellectual property can destroy a company. This agreement ensures all founders are aligned on expectations and have a clear framework for resolving disagreements.

Our AI-generated agreements cover all the critical areas, from cliff and vesting periods to intellectual property assignment and non-compete provisions.

Select Contract Jurisdiction

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California Co-Founder Agreement

California has some of the most employee and contractor-friendly laws in the United States. The state's strict worker classification rules under AB5, ...

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🇺🇸

Texas Co-Founder Agreement

Texas is widely considered a business-friendly state with strong contract enforcement traditions. The state follows at-will employment, enforces reaso...

View template

🇺🇸

New York Co-Founder Agreement

New York is a major commercial hub with sophisticated contract law shaped by centuries of case precedent. The state's courts are experienced with comp...

View template

🇬🇧

United Kingdom Co-Founder Agreement

United Kingdom contract law is governed by common law principles, the Employment Rights Act, and extensive regulations implementing retained EU law in...

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Key Clauses Included

Equity Split and Vesting

Defines each founder's ownership percentage and vesting schedule, typically with a 4-year vesting period and 1-year cliff.

Roles and Responsibilities

Assigns specific roles, titles, and areas of responsibility to each co-founder.

Decision Making

Establishes how major decisions are made, voting rights, and deadlock resolution procedures.

IP Assignment

Ensures all intellectual property created for the company is owned by the company, not individual founders.

Departure Terms

Covers what happens when a co-founder leaves — voluntarily or involuntarily — including buyback provisions and accelerated vesting.

Who needs this?

Startup co-founders at the formation stage
Existing teams formalizing their partnership
Friends or colleagues starting a business together
Technical and non-technical co-founders defining contributions

When to use it

At the very beginning of a startup — ideally before any code is written
When adding a new co-founder to an existing venture
When co-founders want to formalize a handshake agreement
Before accepting any outside investment

Frequently Asked Questions

What is a standard equity split for co-founders?

There's no universal standard. Equal splits (50/50) are common for two co-founders, but many advisors recommend splits based on contributions — idea, capital, time commitment, and expertise. What matters most is that all founders feel the split is fair.

What is a vesting cliff?

A vesting cliff is a minimum period (typically 1 year) before any equity vests. If a co-founder leaves before the cliff, they receive no equity. After the cliff, equity vests monthly or quarterly over the remaining vesting period (typically 3 more years).

What happens if a co-founder wants to leave?

The agreement should specify departure terms — including what happens to unvested equity (typically forfeited), whether the company can buy back vested equity, and any non-compete or non-solicitation obligations.

Related Templates

IP Assignment Agreement

Generate an intellectual property assignment agreement. Transfer patents, copyrights, trademarks & trade secrets. Jurisdiction-specific templates available.

Advisor Agreement

Create a startup advisor agreement with equity compensation, vesting, and scope of advisory services. Based on FAST Agreement standards.

SAFE Note

Generate a SAFE (Simple Agreement for Future Equity) note for your startup. Based on Y Combinator standards. Customizable for your cap and terms.

Mutual NDA

Generate a mutual non-disclosure agreement in 60 seconds. Legally reviewed, jurisdiction-specific NDAs for CA, TX, NY & UK. E-sign and share instantly.

Generate your co-founder agreement now

Create a customized co-founder agreement in 60 seconds with AI.

Get Started Free

Co-Founder Agreement Template

Our AI-generated agreements cover all the critical areas, from cliff and vesting periods to intellectual property assignment and non-compete provisions.

Select Contract Jurisdiction

🇺🇸

California Co-Founder Agreement

California has some of the most employee and contractor-friendly laws in the United States. The state's strict worker classification rules under AB5, ...

View template

🇺🇸

Texas Co-Founder Agreement

Texas is widely considered a business-friendly state with strong contract enforcement traditions. The state follows at-will employment, enforces reaso...

View template

🇺🇸

New York Co-Founder Agreement

New York is a major commercial hub with sophisticated contract law shaped by centuries of case precedent. The state's courts are experienced with comp...

View template

🇬🇧

United Kingdom Co-Founder Agreement

United Kingdom contract law is governed by common law principles, the Employment Rights Act, and extensive regulations implementing retained EU law in...

View template

Key Clauses Included

Equity Split and Vesting

Defines each founder's ownership percentage and vesting schedule, typically with a 4-year vesting period and 1-year cliff.

Roles and Responsibilities

Assigns specific roles, titles, and areas of responsibility to each co-founder.

Decision Making

Establishes how major decisions are made, voting rights, and deadlock resolution procedures.

IP Assignment

Ensures all intellectual property created for the company is owned by the company, not individual founders.

Departure Terms

Covers what happens when a co-founder leaves — voluntarily or involuntarily — including buyback provisions and accelerated vesting.

Who needs this?

Startup co-founders at the formation stage
Existing teams formalizing their partnership
Friends or colleagues starting a business together
Technical and non-technical co-founders defining contributions

When to use it

At the very beginning of a startup — ideally before any code is written
When adding a new co-founder to an existing venture
When co-founders want to formalize a handshake agreement
Before accepting any outside investment

Frequently Asked Questions

What is a standard equity split for co-founders?

What is a vesting cliff?

What happens if a co-founder wants to leave?

Generate your co-founder agreement now

Create a customized co-founder agreement in 60 seconds with AI.

Get Started Free