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A co-founder agreement prepares founders for worst-case scenarios, ensuring relationships remain amicable if challenges arise. Similar to a pre-nuptial agreement, it establishes a framework for collaboration. Startup lawyer Feijo discusses the importance of such agreements and highlights essential terms to consider. He emphasizes that "divorces" among co-founders often lead to startup failures and aims to prevent that outcome. The co-founder agreement functions as a short-form shareholder agreement, particularly relevant in modern fundraising contexts like YC SAFE agreements, where investors receive shares only at a future pricing event. Understanding these dynamics is crucial for startup success.
