Document the services, duties and commitment of founders, especially when tied to shared vesting.
Founders are the main service providers to startups. They usually also have the largest shareholdings – which is compensation for the commitment they make to growing the venture. When there are multiple founders involved with their equity linked to share vesting, it is essential that the service expectations of the founders is documented, so that there is no ambiguity on expectations. A Founder Services Agreement can document the relationship as an employee, a contractor or as an unpaid director.
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