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

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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