Who is a Founder?
Lee McMahon avatar
Written by Lee McMahon
Updated over a week ago

A Founder is a person who is involved in the initial creation and development of a Startup. A person or several people can be Founders of the Startup. If there is more than one Founder (or “co-founders”), they may take on different roles and responsibilities in the team as the Startup develops.

The Founders will invest the initial capital in the Startup and, after the Startup has made the decision to incorporate a company, the Founders will own the shares in it. The Founders may also be directors of the company.

The Founders should sign a Founders’ Agreement (a type of Shareholders’ Agreement) to govern the relationship between the Founders and the Startup, including their rights, responsibilities and their equity stake in the Startup. This clarifies the Founders’ status and position and helps to avoid disputes arising in the future.

Did this answer your question?