Ycombinator Founders Agreement

We have a standard agreement for all our investments. We invest $1250,000 in a “post-money” agreement for future capital, and we enter into an agreement with the company and the founders that defines certain specific YC guidelines and rights, including a right to participate in future corporate financing cycles (the “YC agreement”). A creative/business contract is a document that ensures that disputes between co-founders, usually in a prefabricated company, are kept to a minimum. The document is not legally required to start a business; But it`s a good idea if there`s more than one founder. The purpose of the agreement is to outline roles and responsibilities, capital and commitments, as well as the allocation of intellectual property. When a startup is created between a group of friends or people who trust each other, it may be pointless to establish a creative (or business) agreement, but it is often underestimated how many problems have the potential to arise between the founders. There are many things that people don`t think about or think about before starting a business, so an agreement from a founder can help clarify things and formalize the relationship between co-founders in the business sense. Also, if a start-up forms a little quickly or prematurely from the back of a good idea, the lines around themes such as IP can be blurred. Too often, good business ideas fail because of the lack of agreement or cooperation between the co-founders of a company, so that this agreement will minimize the risks.

There are many different ways to do this. They don`t need to follow their very specific type of framework. They have a lot of really good justifications in their article. All you have to do is accept in advance what you want to do. So, if you`re angry, go ahead, okay, great, we have a lawsuit for that. And the process says, oh, he says, go take a break or eat a Bologna sandwich, or take a nap first, and then we`ll find out what we need to do. Maybe it`s a process where it`s like that, hey, if there`s a real disagreement and both sides feel so strong, we`re going to flip a coin, and that will be the time test. We let the lady`s happiness decide.

It doesn`t matter. All you have to do is accept both. Founders often wonder how to share shares with their co-founders. When I search the internet on this subject, I often see terrible advice that generally argues for considerable inequality between the different members of the founding team. We see this trend in the thousands of applications we review each year at Y Combinator. Sometimes there are opportunities for founders outside the company. What is considered acceptable and considered unacceptable for a founder to participate should be included in the agreement to avoid any dispute. Finally, it is sometimes difficult to compare the offers of different accelerators. What is important is that we do not charge companies fees to be part of YC. We understand the complex reasons why some accelerators levy royalties on companies that participate in their programs and, while we do not believe this is bad behaviour, founders should naturally deduct these costs from the investment when considering these offers.