Business Startups

Cofounder Agreements and Equity Splits

Build clear founder terms before ambiguity becomes conflict

Cofounder Agreements and Equity Splits logo
Quick Course Facts
18
Self-paced, Online, Lessons
18
Videos and/or Narrated Presentations
6.0
Approximate Hours of Course Media
About the Cofounder Agreements and Equity Splits Course

Cofounder Agreements and Equity Splits is a practical Business course for founders who want to establish fair, durable terms before misunderstandings damage the company. You will learn how to Build clear founder terms before ambiguity becomes conflict, align expectations early, and prepare lawyer-ready agreement instructions with confidence.

Build Strong Cofounder Agreements And Equity Splits For Your Business

  • Clarify founder roles, working commitments, decision rights, and operating expectations before pressure rises.
  • Design equity splits using fairness, risk, future value, vesting, cliffs, and founder departure protections.
  • Prepare for fundraising conversations by understanding dilution, option pools, investor expectations, and acquisition scenarios.
  • Run professional equity discussions and turn term sheet notes into clear instructions for legal counsel.

This course teaches founders how to structure Cofounder Agreements and Equity Splits that support a healthier Business partnership.

You will examine why cofounder agreements matter even before revenue, customers, or outside investment exist. The course breaks down the anatomy of a cofounder agreement, including founder responsibilities, IP assignment, confidentiality, prior work, salary, expenses, side projects, and outside work.

Through the equity design lessons, you will compare equal splits, contribution-based splits, vesting structures, reverse vesting, good leaver and bad leaver provisions, buybacks, and unvested shares. You will also learn how governance terms such as CEO authority, board control, voting, deadlocks, and reserved matters can protect the Business while keeping founders aligned.

By the end, you will be able to Build clear founder terms before ambiguity becomes conflict, adapt agreements as the company pivots or adds new cofounders, and approach Cofounder Agreements and Equity Splits with a more professional, investor-ready mindset.

Course Lessons

Full lesson breakdown

Lessons are organized by topic area and each includes descriptive copy for search visibility and student clarity.

Foundations

3 lessons

This lesson explains why cofounder agreements matter most when a startup is still pre-revenue, informal, and optimistic. At that stage, founders often believe trust and shared ambition are enough, but…

Lesson 2: The Anatomy of a Cofounder Agreement

20 min
A cofounder agreement is the operating blueprint for the founding team. It turns informal promises about ownership, work, authority, departures, and conflict into written terms that can be understood …

Lesson 3: Founder Roles, Expectations, and Working Commitments

18 min
This lesson helps founders turn vague enthusiasm into clear working commitments. It focuses on defining each founder’s role, authority, expected contribution, time commitment, communication norms, and…

Equity Design

3 lessons

Lesson 4: Equity Split Principles: Fairness, Risk, and Future Value

22 min
This lesson explains how founders should think about equity splits before numbers harden into expectations. The focus is not on finding a universally “perfect” percentage, but on using a disciplined f…

Lesson 5: Equal Splits: When They Work and When They Create Problems

18 min
Equal equity splits can be a sensible choice when founders are contributing at similar levels, joining at the same time, sharing comparable risk, and making a deliberate decision to preserve trust and…

Lesson 6: Contribution-Based Splits Without Overvaluing the Past

21 min
This lesson explains how to design contribution-based founder equity splits without letting early ideas, prototypes, or unpaid effort distort the long-term economics of the company. Students will lear…

Ownership Protection

3 lessons

Lesson 7: Vesting, Cliffs, and Reverse Vesting for Founders

23 min
Founder vesting protects a company from giving permanent ownership to someone who leaves before earning their long-term stake. In this lesson, Professor Peter Lambert explains the practical mechanics …

Lesson 8: Good Leaver and Bad Leaver Provisions

20 min
This lesson explains how good leaver and bad leaver provisions protect a startup when a founder leaves before fully delivering on their expected contribution. It focuses on practical drafting choices:…

Lesson 9: Founder Departures, Buybacks, and Unvested Shares

22 min
This lesson explains how founder equity should be handled when a founder leaves, stops contributing, is terminated, or has not yet earned all of their shares. Students learn how vesting, company repur…

Legal Building Blocks

1 lesson

Lesson 10: IP Assignment, Confidentiality, and Prior Work

19 min
This lesson explains the legal building blocks that keep a young company’s ownership of its work clean: intellectual property assignment, confidentiality duties, invention disclosure, and prior work c…

Governance

2 lessons

Lesson 11: Decision Rights, Deadlocks, and Reserved Matters

21 min
Decision rights turn founder roles into an operating system: who can decide what, when consent is required, and how the company moves when reasonable people disagree. This lesson shows how to separate…

Lesson 12: CEO Authority, Board Control, and Founder Voting

20 min
This lesson explains how founders should define operating authority before control questions become personal disputes. It focuses on the practical boundary between CEO decision rights, board approval,…

Operating Terms

1 lesson

Lesson 13: Salary, Expenses, Side Projects, and Outside Work

18 min
This lesson turns the cofounder agreement from a cap table document into an operating document. It covers how founders should handle salary, company expenses, reimbursement rules, side projects, consu…

Fundraising Readiness

2 lessons

Lesson 14: Dilution, Option Pools, and Investor Expectations

23 min
This lesson explains how fundraising changes founder ownership through dilution, option pool expansion, and investor ownership targets. Learners will understand why a financing round can reduce each f…

Lesson 15: Acceleration, Change of Control, and Acquisition Scenarios

19 min
This lesson explains how cofounder agreements should handle acceleration, change of control, and acquisition scenarios before a transaction creates pressure. Students learn the difference between sing…

Evolving the Agreement

1 lesson

Lesson 16: Handling Pivots, New Cofounders, and Changing Contributions

20 min
This lesson explains how founder agreements should adapt when the company changes direction, a new cofounder joins, or the original founders’ contributions no longer match the original assumptions. Th…

Negotiation Practice

1 lesson

Lesson 17: Running the Equity Conversation Professionally

21 min
This lesson teaches founders how to run the equity conversation as a professional negotiation rather than an emotional debate. Students learn how to prepare, frame the agenda, surface assumptions, dis…

Implementation

1 lesson

Lesson 18: From Term Sheet Notes to Lawyer-Ready Instructions

18 min
This lesson turns founder term sheet notes into a clear instruction package that a startup lawyer can draft from efficiently. It focuses on organizing decisions, flagging open issues, separating busin…
About Your Instructor
Professor Peter Lambert

Professor Peter Lambert

Professor Peter Lambert guides this AI-built Virversity course with a clear, practical teaching style.