What should a founder service agreement include, and how should founders approach negotiating one?

A founder service agreement typically needs to cover equity, corporate governance, intellectual property (IP), restrictive covenants, and confidentiality clauses. Members report these agreements are often required by investors as part of funding conditions.

Key considerations members raised: - **Scope**: The agreement should address equity earnings, governance rights, IP ownership, restrictive covenants (e.g., non-compete clauses preventing you from starting a rival company simultaneously), and confidentiality obligations. - **Caution on over-signing**: One experienced member advised "not to sign one at all, or have the most basic employment contract possible," suggesting founders should be cautious about overly restrictive terms. - **Timing**: Founders should prioritise tidying up these agreements before final funding tranches are released, as investors often make this a condition of payment.

The community did not share a specific template in this discussion, though members indicated willingness to source one from their networks. No specific legal firms or template providers were named.