Should we think about exit clauses in our founders agreement?


Should we include exit provisions into our founders agreement? Or does it matter at all because agreements we sign with investors during financing rounds will change the co-founders' position in the startup anyway?

Answers: 2 public & 0 private

IP Consultant

I will definitely important clause to mitigate future dispute , we have seen many cases where the investor part payment of its investment and withdraw the other portion. So it's very important to consider the exit clause also exist route clear the investor on its return and other founders Board Structure and Composition of a company. In short, exit clause helps other parties to know their possibility of leaving company with any disputes and grudges.

Patent Attorney


This question begs many unanswered questions. It almost sound like you have a general partnership? Anyhow, legal entities, whether formally formed, or informal formed, have default rules. Default rules that apply such as what happens when the entity dissolves or a partner (etc) wants to leave. If you want to control events, then as Nischal says, its a very good idea to have the rules outlined. You may be surprised what the default rules for your state are.

Hope this helps,

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