Structure Co-Founder Shareholder Agreements (4-Year Vesting, Good/Bad Leaver Buybacks)
Never split startup equity 50/50 without vesting! Structure a founder shareholder agreement covering decision deadlock breakers, 4-year reverse vesting with a 1-year cliff, and Good/Bad Leaver buyback formulas.
More startups die from co-founder deadlocks and "dead equity" (a quitter holding 30% of the cap table) than from competitors. Setting vesting and buyback rules on Day 1 protects everyone.
Step-by-Step Action Checklist
0 / 4 CompletedYou are a Venture Law & Startup Equity Architect. Our founding team profile: [List each founder's cash contribution, full-time vs. part-time commitment, and role]. Draft a comprehensive **Co-Founder Shareholder Agreement Blueprint**: 1) **Equity Split & Deadlock Prevention**: Critique our proposed split, separate Cash Equity from Sweat Equity, and structure voting control; 2) **4-Year Reverse Vesting Schedule with a 1-Year Cliff**: Exact contractual mechanics so early quitters don't keep unvested equity; 3) **Good Leaver vs. Bad Leaver Mandatory Buyback Matrix**: Define clear triggers and exact buyback pricing formulas (Nominal $1 vs. Original Cost + Interest vs. Net Asset Value) for both unvested and vested shares; 4) **IP Assignment, Full-Time Commitment & Spousal Consent Clauses**.