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A Founder Agreement sets out the terms on which two or more individuals (co-founders) have agreed to work together in a newly incorporated company in order to develop a business concept and/or technology.
A mutual confidentiality agreement (also know as a non-disclosure agreement) is where both parties agree terms on which to disclose confidential information to each other for general commercial purposes.
A Consultancy Agreement is a contract for services between an independent contractor (a self employed individual) and a client company which sets out the terms on which the contractor provides consultancy services to the client company. Also known as freelancer agreement or contractor agreement.
This employment agreement (also known as an employment contract or service agreement) can be used when hiring a new member of staff to determine the key terms of employment including employment conditions, rights, responsibilities and duties of both the company and the employee.
This is a standard, easy and fast term sheet, drafted by YC and customisable live on the Genie AI platform. Series A documents set the precedent for the terms of future rounds. For this reason you want to keep things simple early on, as complexity can creep in with each round. If you begin with complex terms, you will invariably make future rounds more complicated which might result in some investors dropping out.
Y Combinator have seen hundreds of term sheets and they therefore know what 'good' looks like. Founders, especially if it is their first company, do not. YC created this term sheet as an attempt to standardise terms and use plain english rather than legalese to alleviate this common disadvantage faced by founders.
The clauses and legal terms around company structure, board composition and operational control are particularly important to keep balanced and standardised.
Investors might manifest their desire to reduce downside risk or boost upside potential through the use of dirty terms, pushing you to sell against your wishes or controlling how much risk you take on in pursuit of a new potential strategy or pivot.
This template is intended to be customised with your own requirements, so you can cover the specifics of your standard needs. It will also allow you to fully customise it to your own specifications as you deem fit.
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