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Inc42
| 2mThe Imperative Of Founders’ Agreement For Indian Startups
A founders' agreement is crucial for the success and stability of startups, yet it is often overlooked. Without a founders' agreement, startups are at risk of internal disputes, which can lead to failure. Key issues addressed in a founders' agreement include roles and responsibilities, decision-making, deadlocks, equity split and vesting, intellectual property ownership, remuneration, transfer of shares, and exit strategies. Not having a founders' agreement can make it difficult to raise funds and can result in complicated legal battles. Investing in a founders' agreement is essential for the long-term viability of startups.
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