Co-founder Term Sheet Template (Generator)

Generate a professional term sheet for your co-founder agreement in minutes. Our free tool helps you outline equity splits, intellectual property rights, and key terms to establish a clear foundation for your startup partnership.

Project Name

Founder 1 Name

Founder 2 Name

Founder 1 Equity (%)

IP Protection

Non-Compete

Voting Rights

Exit Rights

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FOUNDER COLLABORATION TERM SHEET

Project: [Project Name]

PARTIES:

  1. [Founder 1 Name] ("Founder 1")
  2. [Founder 2 Name] ("Founder 2")

KEY TERMS:

  1. Equity Structure

    • Founder 1: 50%
    • Founder 2: 50%

  2. Vesting Schedule

    • 4-year vesting period
    • 1-year cliff
    • Monthly vesting thereafter

  3. Intellectual Property

    • All IP created during the collaboration will be owned by the company
    • Each founder assigns all relevant prior IP to the company

  4. Non-Compete

    • Both founders agree not to compete during involvement and for 12 months after
    • Geographic scope: Worldwide

  5. Voting Rights

    • Major decisions require unanimous consent
    • Day-to-day decisions require simple majority

  6. Exit Rights

    • Right of first refusal on share transfers
    • Tag-along rights
    • Drag-along rights for majority holders

  7. Commitment

    • Both founders commit to working full-time on the project
    • Major time commitment changes require board approval

This term sheet is non-binding except for the confidentiality provisions.

Date: 5/1/2026

Disclaimer: This is a template for guidance only. Please consult with legal professionals before finalizing any agreements.