A Founder's Guide to Key Legal Templates
Today, I did a quick search for basic legal templates for pre-seed startups using a simple Google search. Here’s the search rabbit hole I went down (!) and the results:
Randomly came across the Peak VC website.
Discovered Ask Peak—their AI chatbot. They describe it as:
"Tap into 15 years of Peak wisdom, served by our AI chatbot and powered by our portfolio company, Breyta. Ask anything about startups—funding, product-market fit, scaling, team building—or about Peak as an investor. It’s almost as good as talking to us."
Screenshot about Peak Chatbot
3. The first useful result:
“For a pre-seed startup, having the right legal templates is crucial to ensure smooth operations and compliance. While the document I reviewed doesn't provide specific templates, it highlights the importance of having a robust contract management system.(..)
For a pre-seed startup, the basic legal templates you might consider include:
Founders' Agreement: Outlines the roles, responsibilities, and equity distribution among the founders.
Non-Disclosure Agreement (NDA): Protects sensitive information shared with potential partners or employees.
Employment Contracts: Defines the terms of employment for new hires, including roles, responsibilities, and compensation.
Service Agreements: For any services your startup might offer or receive.
Intellectual Property Assignment Agreement: Ensures that any IP created by employees or contractors is owned by the company.”
4. Second Prompt: “Provide an example (of) template for each of these legal agreements”
Result: No Templates Found, But Useful Structured Insights
“I conducted searches for templates related to the following agreements: Founders' Agreement, Non-Disclosure Agreement, Employment Contract, Service Agreement, and Intellectual Property Assignment Agreement. Unfortunately, the search results did not yield specific templates for these agreements. However, I can provide a general overview of what each template typically include”s:
Founders' Agreement
This document formalizes the relationship between co-founders and helps prevent disputes. Key elements include:
✅ Roles and responsibilities of each founder
✅ Equity ownership and vesting schedules
✅ Decision-making processes
✅ Dispute resolution mechanisms
✅ Exit strategiesNon-Disclosure Agreement (NDA):
✅ Definition of confidential information
✅ Obligations of the receiving party
✅ Duration of confidentiality
✅ Exclusions from confidentiality
✅ Consequences of breach
Employment Contract:
✅ Job title and description
✅ Compensation and benefits
✅ Work hours and location
✅ Termination conditions
✅ Confidentiality and non-compete clauses
Service Agreement:
✅ Description of services to be provided
✅ Payment terms
✅ Duration and termination of the agreement
✅ Responsibilities of each party
✅ Dispute resolution
Intellectual Property Assignment Agreement:
✅ Assignment of IP rights from employee/contractor to the company
✅ Description of the IP being assigned
✅ Warranties and representations
✅ Governing law
“If you need specific templates, I recommend consulting a legal professional or using a legal tech platform like Precisely, which can help automate and manage these contracts efficiently. If you have any other questions or need further assistance, feel free to ask!”
5. Third Prompt: “Explain more about possible “Decision-making processes and dynamics” between founders and how typically are formalised
🎙Result with Audio Excerpts from a Podcast with Olaf Molenveld (who showed pretty high emotional maturity in handling co-founder exits) on the Exit of His Tech Company
“In the context of decision-making processes and dynamics between founders, the transcript from the file "Selling Vamp to CircleCI - Olaf Molenveld on the exit of his tech company" provides some insights into how these processes can be formalized and managed:
Role Clarity and Specialization: Founders often start by taking on multiple roles, but as the company grows, it's crucial to specialize. For instance, Olaf Molenveld initially took on the CEO role but later transitioned to CTO when a more suitable CEO was hired. This allowed him to focus on technology and product development, which were his strengths.
Olaf Molenveld Selling Vamp to CircleCI - 00:32:51
Hiring External Expertise: Bringing in external expertise, such as hiring a CEO, can be a strategic decision to fill gaps in skills and experience. This decision is often made collaboratively with co-founders and investors to ensure the company has the right leadership to handle specific challenges, such as financial management and scaling.
Olaf Molenveld Selling Vamp to CircleCI - 00:34:12
Strategic Discussions and Decisions: Founders need to engage in strategic discussions about the future of the company, such as whether to pursue further funding or consider acquisition offers. These discussions involve evaluating the company's growth trajectory, market opportunities, and competitive landscape.
Olaf Molenveld Selling Vamp to CircleCI - 00:37:16
Transparency and Team Involvement: It's important for founders to maintain transparency with their team, especially during significant transitions like acquisitions. Keeping the team informed and involved can help manage uncertainty and ensure alignment with the company's goals.
Olaf Molenveld Selling Vamp to CircleCI - 00:47:59
These elements highlight the importance of clear roles, strategic decision-making, and effective communication in managing the dynamics between founders. Each decision should be aligned with the company's long-term vision and operational needs. If you have more specific questions or need further details, feel free to ask!”
6. I decided to dig deeper and came across CircleCI and also explored Accelerated Software Development with AI and CI/CD using Tabnine. You can check it out here: Webinar on CircleCI & Tabnine.
📚🛠️ Go further!
For Founders' Agreement
The Slicing Pie Handbook: Perfectly Fair Equity Splits for Bootstrapped Startups by Mike Moyer's Virtual Dojo
🏋️You can’t get enough - More resources
Smith, J., & Doe, A. (2023). The impact of founder personalities on startup success. Scientific Reports, 13(1), Article 41980. https://doi.org/10.1038/s41598-023-41980-y
Breyta website
CircleCi Webinar