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Step 6: Your Cofounder Agreement

Take your team and your project to the next level and sign a co-founder’s agreement.

This document is key to setting clear expectations and responsibilities for each of you.

It covers important details like

  • roles
  • equity distribution
  • decision-making processes
  • what happens if one of you decides to leave the company.

Having a co-founder’s agreement helps prevent misunderstandings and ensures that you’re both on the same page from the start. It’s all about protecting your partnership and making sure everything runs smoothly. So, don’t skip this step – it’s an essential part of building a strong foundation for your business.

At Foundance, we are dedicated to supporting ventures without borders. Having co-founders all around the world makes it difficult to sign and enact a traditional contract.

Our mission lead us to implement smart, on-chain agreements. Besides allowing co-founders to build remote ventures, they have a couple of advantages. First off, a smart agreement is more secure and transparent since it’s stored on the blockchain, making it nearly impossible to alter without everyone’s consent. This transparency helps build trust between you and your co-founder. Plus, smart contracts automatically enforce the terms you set, so there’s no need for intermediaries, which can save you time and legal fees.

Step 7.1 Select the agreement type​

in order to adjust to your previous experience with agreements and to your business model, Foundance offers multiple agreement types you can choose from.

Step 7.2 Discuss the terms​

Depending on the complexity of the agreement type you selected, you will need to discuss with your co-founders details related to roles, equity distribution and governance.

It is advisable all these are discussed and agreed upon before creating the agreement.

Step 7.3 Configure and Register the agreement​

Once all the details have been discussed, configure the agreement with the parameters and Register it.

info

This step can be performed only by the project creator.

Step 7.4 Co-founders sign the agreement​

All co-founders need to sign the agreement.

Step 7.5 The founder enacts the agreement​

The project creator is able to Enact the agreement. This is when it all becomes official. All changes and decisions required from now on will require a vote.