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A co-founder agreement prepares co-founders for worst-case scenarios, emphasizing the importance of remaining friends if challenges arise. Similar to a pre-nuptial agreement, it outlines essential terms and structures the partnership. In this video, startup lawyer and founder Feijo discusses the significance of a co-founder agreement, key terms to consider, and its lifecycle. He highlights that disputes among co-founders are a leading cause of startup failures. A co-founders agreement functions as a short-form shareholders agreement, especially relevant for startups fundraising through instruments like YC SAFE, where shares are issued only upon a future price event. It’s crucial for co-founders to have this agreement in place to mitigate potential conflicts.
