Read this first
Start New Pact
- We recommend the whole founding team goes through this process together. The whole point of it is to get everyone on the same page, so there's really no point in only one person of the team doing it and then parrot it back to the rest. Get all of you in a room (or group chat) and go through it together. It shouldn't take long provided no conflicts arise. The site won't timeout or lose your session, and all data is saved after each step so you can always come back later. So take your time, this isn't something you want to rush.
- Make sure to read all the yellow boxes titled "Info" you'll find along the way for tips, frequently asked questions, additional comments and recommended reading material.
- Going through the whole process with your teammates will serve several purposes:
- That you discuss every important aspect of working together upfront, and solve any conflicts that may arise now, before any of you invests a significant amount of time, effort or money. For example, if one of you is hoping to raise funding while the other wants to bootstrap; or one of you is looking to put in over 40 hours a week while the other one considers this a do-on-my-spare-time kind of gig, this is something you need to know from the very beginning. Worst case scenario, you might find out that working together may not be the right move. But figuring this out now will preserve the friendship and save yourself the pain of discovering this incompatibility when a lot of time has been invested.
- Make you aware of (and use!) all best practices when starting a business with someone. This includes things like vesting or IP forfeit, which are things that can lead to a lot of pain and legal problems later on, and even kill the business. Every step of the way we'll inform you about what you need to know and why, but in any case feel free to reach out to us for help.
- Get everything in writing. This is legal advice 101 yet still so many people get it wrong. Memories get distorted and people change their minds all the time. When push comes to shove, it really doesn't matter what you agreed to if can't prove it in court. And the way to prove it is to have it in writing. Once you go through the whole process, we allow all founders to "sign" the pact so that it's marked as closed and can't be changed anymore. After that, all founders will have access to the pact in a read-only way.