February 01, 2013

Founders and Advisors

Jean L. Batman

From Advising the Small Business, Chapter 9

  • Find out how venture capitalists determine who is a founder.
  • Find a sample founders agreement at the end of the article.

What Is a Founder?

There is much confusion over what makes someone a founder, and whether it has any legal significance. A founder is really nothing more than a designation that the original promoters of an idea bestow on one another to identify to the outside world who is credited with getting the company off the ground. Often, a key hire may come in well after the company has been formed and in the end be described as a founder.

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