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LegalFoundational

Founder Agreement

Work through equity, vesting, IP ownership, roles, and what happens if someone leaves — before those conversations become awkward or costly.

Created by the Groundwork teamGCreated by the Groundwork team

What you walk away with

A real document, built from everything you worked through — then critiqued the way a tough reviewer would and polished round by round. Plus a project summary that shows your work.

25 steps in the full journey.

Who this is for

Two or more people who have started building together and haven't written anything down. The right time is before it feels necessary — by the time it feels necessary, the conversation is already expensive.

What you'll actually decide

The splits and the terms around them: who owns what, over what vesting schedule, who decides what, how IP created before and after today is assigned, and what happens to equity if someone leaves in month seven.

What first-time founders get wrong here

Splitting 50/50 to avoid a difficult conversation, then discovering the difficult conversation was the point. Close behind: no vesting and no cliff, which means a cofounder who leaves after two months keeps half the company forever — the single most common unfixable mistake at this stage.

The first 10 questions

This is where the conversation starts. Each answer shapes what gets asked next.

  1. 01How many founders are there, and what are their names and roles?
  2. 02What is the company — what does it do, and what stage is it at?
  3. 03Has a legal entity been formed yet, or are you still pre-incorporation?
  4. 04Have the founders discussed any of this formally, or is this the first structured conversation?
  5. 05What is each founder contributing — capital, IP, labor, relationships? How does that inform the equity split?
  6. 06Is everyone working full-time on this, or is someone still at a day job? How should that affect the arrangement?
  7. 07What happens if a founder leaves in the first 6 months? In year 2? This is the question most co-founders avoid until it's too late.
  8. 08Who owns the IP that's already been built — and was any of it developed on a previous employer's time or with their equipment?
  9. 09What decisions require all founders to agree vs. what can one founder decide alone?
  10. 10Equity split: what percentage does each founder own, and what's the rationale everyone genuinely agrees on?

+ 13 more questions across discovery, validation, and the creative brief — each one adapting to what you've already said.

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