Map Key Terms for Equity, IP and Governance
Systematically dissect critical agreement mechanics, including reverse vesting schedules, intellectual property assignment, good and bad leaver provisions, and voting threshold rights. The founder specifies precise commercial terms tailored to each co-founder's historical and future contributions.
Isolating these core legal mechanics eliminates governance ambiguity and prevents catastrophic cap table disruption later. Addressing these terms explicitly maximises venture investability by aligning founder incentives directly with long-term enterprise value creation.
A comprehensive terms matrix mapping proposed vesting schedules, IP transfer mechanics, good/bad leaver clauses, and reserved matters for decision-making. Each term must be supported by explicit rationale agreed upon by the founding team.
Five questions an expert would ask when reviewing your output
Use these to challenge assumptions, pressure-test your logic, and check the quality of this action's output in the context of the parent task and wider venture development.
- 1
What rationale justifies your proposed equity split, and how does it account for future execution risk rather than past ideas?
- 2
How do your good and bad leaver definitions protect the venture from a departing co-founder walking away with a significant equity stake?
- 3
Why did you choose your specific vesting duration and cliff period, and how does it reflect typical UK venture capital expectations?
- 4
What evidence proves that all background IP created prior to incorporation is fully assignable to the new company without encumbrances?
- 5
How do your reserved matters balance founder operational speed with suitable checks and balances on critical company decisions?