Founders Loan Agreement

Also, this is not a bad place to know how founders can (or not!) use company funds, whether they can hold competing shares (and how much, if so?), and who authorizes investments or debts (and what are the processes). As an entrepreneur, there are some important documents with which you need to familiarize yourself. After helping many founders write the same documents, we decided that it would be more effective to sit down with SANDS and create founder-friendly models for all our members. So we did, and our legal models have been shared and used by our members for some time. We want more big technology companies to come out of Norway, and we work every day to help entrepreneurs create such businesses. For us, this means financing, consulting, validation of early markets, recruitment, but also helping creators who spend less time on things for which they do not need to be experts. And now, for the part you`ve all been waiting for: how to split equity between the co-founders. While it is easy to simply consider that the distribution of equity is equal between the co-founders, if one deals with who brings what to the company, one will discover that the “same share” does not result in a “fair share”. Just ask Dan Shapiro, CEO of Glowforge and Founder Institute Mentor. In his GeekWire article “The only wrong answer is 50/50: Calculating the split of co-founders shares,” Dan believes that the share of the shares should be calculated on the value of the founder. Here`s what Dan has to say to determine what each founder`s actions contribute: here`s what you should include in a founder`s agreement: once your lawyer has reviewed the founders` agreement, you may want to send them to some trusted entrepreneurial friends. If you or your co-founders are uncomfortable if you share compensation and equity, you can always obscure these sections.

Often, the personal experience of another small contractor can help you predict some cases that a lawyer may not have seen. Make all the changes you need to make based on everyone`s advice, and sit down a bit to see how they come off. Our data show that 47% of the founders disclose and recover a loan they made to the company. It is interesting to note that the percentage of founders trying to recoup their personal investments is lower in incomplete funding cycles. Only 30% of the founders activate the box to recognize an existing founding loan at first, and this proportion can reach 47% when the cycle is closed. First, you need to decide what intellectual property is for your business. Everything the co-founders do about the company during working time — it`s simple. But what about a co-founder on vacation who invented new ideas? If something has been written in the “Notes” section of a company phone, is it the intellectual property of the company? They might be inclined to be tenacious about it, but it is not necessarily the best approach.