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Founder Vesting Agreement

Standalone founder vesting agreement for Indian startups documenting time-based or milestone-based vesting, cliff, acceleration, and good leaver / bad leaver consequences aligned with investor expectations.

Takes 5 minutes ~2 pages Expert drafted
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What is a Founder Vesting Agreement?

A focused founder vesting agreement that layers on top of founder and shareholder documentation to structure how a founder’s equity vests, accelerates, or is forfeited under different scenarios, tailored for Indian startups.

When should you use this?

Common situations where this document is the right choice.

When issuing or regularising a founder’s equity grant and making it subject to vesting with a cliff and leaver protections.
When onboarding a new co-founder into an existing Indian startup and aligning vesting with prior contributions.
When investors require formal vesting documentation as a condition to funding.

What's included

Key sections and clauses in this document.

Clear vesting commencement date and total vesting period.
Choice between time-based and milestone-based vesting structures.
Configurable cliff period and acceleration provisions on change of control.
Good leaver / bad leaver definitions and economic consequences.
Repurchase, forfeiture and lock-in mechanisms aligned with investors.
Governing law and arbitration framework suitable for Indian companies.
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Frequently asked questions

Everything you need to know before creating your document.

Can vesting commence before incorporation of the company?+

Yes. It is common for founders to negotiate vesting commencement dates that are earlier than the incorporation date to reflect pre-incorporation efforts, subject to proper documentation and board approval.

How does this agreement interplay with ESOP or option plans?+

This agreement governs founder equity; ESOPs for employees and advisors are usually governed by a separate ESOP scheme and grant letters, but similar vesting and leaver principles often apply.

Do investors insist on founder vesting in India?+

Most institutional investors expect founders to be subject to vesting with an appropriate cliff so that equity is earned over time and is not retained by early departing founders.

Legally valid

Compliant with Indian law

Expert drafted

By certified legal professionals

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Founder Vesting Agreement

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