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Ask HN: CTO wants me to leave

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Re: Ask HN: CTO wants me to leave

#221

Earlier quoted context omitted.

What I don't get; shouldn't it already have vested if he is a founder? I'm not sure about the system there but when I found a company those shares are mine?

The advice has been given several times, on HN, that founders should vest, so that you don't need to claw back 1/3 the company from a founder who walks away a month in.

This is sane advice if you're playing the standard VC game where you shop around for a co-founder, raise funds, and build a product (not necessarily in that order).

OP's situation sounds more like a bootstrapped small business where he invested his life savings and blood/sweat/tears. I'm not sure that vesting shares is ideal there -- perhaps a well defined shotgun clause or similar is more reasonable to handle unruly founders.

Re: Ask HN: CTO wants me to leave

#222

Earlier quoted context omitted.

What I don't get; shouldn't it already have vested if he is a founder? I'm not sure about the system there but when I found a company those shares are mine?

The advice has been given several times, on HN, that founders should vest, so that you don't need to claw back 1/3 the company from a founder who walks away a month in.

[deleted]

Re: Ask HN: CTO wants me to leave

#223
Keep in mind there is a strong conflict of interest. The business guys love to squeeze out the tech after launch or before a funding round to keep a bigger slice of the pie. Often they won't say that's why they are doing it, but bizarre things will happen like they'll promise to do things then not do them just to start a fight, etc..

I used to work for a startup called WorkSmart Labs. They got Google Ventures funding, but when they knew it would close they go me to agree to take a lot more vesting equity for several months. In exchange they were supposed to help with some things to help my wife's green card process - changing addresses I was taxed and paid at to a joint residence, joint health insurance, etc.. They were happy to pay me less cash, never did the paperwork they promised, and ditched me right when the deal closed so the unvested equity was worthless.

You should watch out for similar very dirty behavior. I don't know if you are in SV, but we hear people all the time talking about things like writing every single line of code for the product, then getting kicked out after funding.

Re: Ask HN: CTO wants me to leave

#225
I'm surprised at all of the responses calling for the CTO to be fired. It's very common to have founders who are very good at the very early stage but lack the experience to scale the technology, the team, the culture and the business.

Ask yourself these questions: * Are the CEO cofound and CTO in cahoots, engaged in a malicious equity grab? If so, you chose partners poorly, move on post-funding. If not, then there's probably something important to listen to here. Then ask: * Are your technical and project execution chops going to take the company to the next level of technical, organizational and business scale? If so, you chose a CTO poorly and your CEO co-founder is a fool, move on post-posting. If not, then you have another choice: * Are there other ways you can help the technology, organization and business grow? If so, discuss that transition instead of an exit. Otherwise, be grateful for the lessons learned and move on post-funding.

In all of the "move on" cases, assess that your equity position is aligned with your contribution to where the company will be when it's ultimately profitable or liquid. If it's still very early stage, that proportion may be very small but it will be better to have a small bit of something successful that a large portion of a failed company.

Set aside ego, consult an attorney (as advised elsewhere), don't engage in scorched earth and figure out if these are people you want to continue working with, you can contribute getting the company to the next level and if so, in what role.

Re: Ask HN: CTO wants me to leave

#226
post #71

Earlier quoted context omitted.

>You have phrased this as an almost apologetic post And I bet this is why the CTO has taken the path that they have. They sense the same thing that we sense from the tone of this comment so they are going after that perceived weakness.

I am a very easy going guy who dislikes confrontation, I also assume the people I am working with are my peers, and treat them as such.

Hi! I'm the same way. That's an excellent attitude to take with people who behave well. But for those who don't, you have to fight them. Certainly for yourself. But if you want to found companies, you're going to have to learn to fight for everybody. Because otherwise one person who enjoys confrontation can make your company a nightmare.

So if you're reluctant to fight for yourself, fight for your colleagues, current and future. And honestly, I think it's good in the long term even for the people you're fighting. To be happy, we all need to learn to respect other people.

Re: Ask HN: CTO wants me to leave

#227
post #20

Listen ‎Eduardo Saverin: FIRST THING GET YOUR OWN LAWYER AND TALK TO THEM NOW! The key question here is : do you have equity, and how much equity do you have in percentage terms? If you are an equal cofounder, then when someone turns up and says "you have to leave cause better people have been employed", you say "fuck off". Think about it - EVERY company that grows will employ people who are better than the cofounder…

> And who the fuck does this guy think he is that he can tell a cofounder to leave? You are his BOSS.

This is the key point. OP founded the company. Presumably he has close to a 50% equity stake. There are other CTOs available -- ditch this one you can't trust immediately.

Re: Ask HN: CTO wants me to leave

#229
This may be an unpopular sentiment, but I would do three things:

1) Hire an attorney to make sure your equity is safe 2) Negotiate for an above-market-rate consulting engagement that will continue to pay your bills in return for ~!0 hours a week of consulting and... 3) Start something else.

You have a unique skill set that allows you to start company that go on to raise money, generate revenue, and hire people. This is waaay more valuable than your ability to write code at a growth company.

Just my thoughts.

Re: Ask HN: CTO wants me to leave

#230
Tough situation, sorry to hear about it. The comments in the thread are very informative. As I read each comment I'm thinking to myself "is this commenter an engineer / founder / vc / etc" and finding that to be an interesting exercise.
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