A founders' agreement is a document created by the founders of a company to establish how the company will function. It is the product of pre-incorporation discussions that should take place among the company's founders before they establish the company. It includes provisions on ownership structure, decision making, dispute resolution, choice of law, transfer of ownership, ownership percentages, voting rights, intellectual property rights, and more.
Yes, many times you can. It’s like haggling at a flea market; you can discuss terms that work for both parties before sealing the deal.
Absolutely, like any investment, there are risks. If the company doesn’t do well, you might lose your investment. It’s wise to keep your eyes peeled and not put all your eggs in one basket.
You’ll want to look closely at the terms of the note, the startup’s potential, and your comfort level with risk. It's a bit like ensuring you're not jumping into deep water without checking the depth first.