Founder Equity, Vesting & IP Ownership
The expensive founder disputes almost always trace back to a conversation that never happened: who owns what, what happens if one of you leaves, and whether the code written before incorporation belongs to the company. We help teams settle those questions in writing while everyone is still on good terms.
Where we add value
Splitting equity and vesting it
A split that reflects contribution and risk, and a vesting schedule—four years with a one-year cliff is the common starting point—so that a cofounder who leaves after six months does not keep a third of the company.
IP assignment
The company only owns what has been assigned to it. We paper the assignment of pre-formation work, confirm that no prior employer has a claim, and put confidentiality and invention-assignment agreements in place for everyone who contributes.
Acceleration, buyback and departure
What happens on an acquisition, on termination, or when a founder simply stops contributing: single- versus double-trigger acceleration, repurchase rights and the price at which they apply.
Keeping the cap table honest
Option pools, advisor grants and early investor promises change the picture. We keep the documents and the spreadsheet in agreement so there is no surprise at the term sheet.
How we work with founders
Diagnose
Inventory the founders, the work already done and the promises already made.
Design
Agree the split, vesting, acceleration and assignment terms.
Document
Prepare the agreements and the board approvals, and update the cap table.
Founder questions
Practical answers to frequently asked questions. Individual circumstances can affect the best course of action.