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.