A Founders’ Term Sheet sets out the key benefits and obligations of the founders of a business in user-friendly language. It normally also includes some standard legal language about things like confidentiality, resolution of disputes and ownership of intellectual property. Generally, a Term Sheet will state that the parties will enter into a full agreement in future as, essentially, a Term Sheet is the skeleton on which a fully-fleshed out agreement would be built.
ScaleUp’s Founders’ Term Sheet document generator will produce the key terms as a starting point for you and your co-founders. You should contact your lawyer before finalising your Founders’ Term Sheet, especially if you are contemplating different vesting arrangements.
If you’d like to know more, please see our Article We’re going into business together. Do we need an agreement?. START my business has more information for founders of early stage companies.
The ScaleUp Founders’ Term Sheet is suitable for use when the founders are at the “ideas stage” and have not yet incorporated a company. If you already have your Founders’ Term Sheet and/or are ready to take the next step, please see our Article Do we need a Founders’ Agreement?.
Click here to generate your ScaleUp Founders’ Term Sheet.