Use your time to find his weakness and leverage your way out of this.
Ask HN: Co-founder wants me to leave but won't entertain a buy out offer
311–320 of 435 posts
Re: Ask HN: Co-founder wants me to leave but won't entertain a buy out offer
#312This is a terrible situation because you're probably working with a really terrible founder.
Even if you end up holding on to the 40%, it's likely they'll try to screw you hard in the future so be wary of that.
If it's possible in the very, very nicest of indirect terms make sure they know they can get sued for these kind of shenanigans and it will ruin the company.
Long term though, it's hard to say, because they'll aggressively want to take everything.
Also: get a lawyer. (I should have said that first)
Re: Ask HN: Co-founder wants me to leave but won't entertain a buy out offer
#313It sounds like you own 40% of something fairly valuable and now that it's 11 months into your contract other founder who needed your help is getting greedy and trying to push you out before you are owed anything. You said it yourself, you've grown hugely, you're dominating SEO since you joined, and built loads of products. This is your 'partner' getting greedy after you've done a lot of hard work. It wouldn't have ha…
Yeah - I don't see how people can tell them to just give up. Go scorched earth - what do you have to lose? Know the other guy is hostile and don't trust them to do the right thing. Consider your options outside of that and talk it over with the other investor. If you're the technical cofounder here you're probably in a stronger position to negotiate. If you can get the other investor to see what's happening here (you…
This advice will almost certainly result in no deal and leave all parties worse off.
Instead, I would have an open, honest conversation, listen from a place of empathy and generosity and seek a compromise.
The truth is, unless your cofounder has the right to terminate your employment, then continue working and try to create as much harmony as possible.
Co-founder disputes are awful and usually result in the death of the company. But being aggressive will only speed up the Demise not prevent it, and if the company implodes that equity is worth nothing anyway.
Re: Ask HN: Co-founder wants me to leave but won't entertain a buy out offer
#314It feels like there is something not being said. Your cofounder just randomly woke up and said you should resign? Nothing triggered it, no prior conflict, no warning? Seems odd to me.
Re: Ask HN: Co-founder wants me to leave but won't entertain a buy out offer
#315You need to ask for lots of advice but ultimately you need to make your own mind up about the situation.
This is a hot potato, everyone is going to have an opinion. So for this reason you need to make your mind up.
Source: this thread - there's some very strong opinions here. Get some 121 advice instead, this thread is just guidance only.
Re: Ask HN: Co-founder wants me to leave but won't entertain a buy out offer
#316Since you have a 1-year cliff and have only been there 11 months, sounds like as of today you have 0% equity. So the immediate question may be whether your co-founder can fire you. In 1 month, you've vested 25% of your grant, or 10% of the company. So I would try to get to that mark to strengthen your negotiating position. Any references to 40% are red herrings at this point. Unless there's a specific buyback clause…
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Re: Ask HN: Co-founder wants me to leave but won't entertain a buy out offer
#317Can I give you some advice that really sucks? Walk away. It's not fair, but starting a company isn't like getting a job. It's a relationship and a risk that doesn't always work out. Sometimes you find more money and success than you could ever dream of, and other times you waste 11 months. Here's my thought process. You and your cofounder aren't going to be able to work together after this. The company has no money a…
I am not a founder but this does not seem like sound advice. In a month, that 3% pittance becomes 10%. Also, it does not seem that the company has no value at all, if it is primed to make money. The extrinsic value on the 40% is worth negotiating over and not giving it up and walking away. Nobody should do that unless there is gross misconduct or negligence involved.
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Re: Ask HN: Co-founder wants me to leave but won't entertain a buy out offer
#318I'd say first things first. You have 11 months and a one year cliff. Find a way to stall for a month and your position gets much stronger. This is a great environment to find a way to stall. Tell your co-founder to write up a proposal so that you can have a lawyer look at it. That's easy to turn into a month of stalling.
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Re: Ask HN: Co-founder wants me to leave but won't entertain a buy out offer
#319Hey. As a former lawyer, I'm going to echo the many comments in this thread to consult a lawyer. If you find a good one with relevant experience, it should only take a few hours at most to properly understand the exact situation you are in and know your options. Your rights could vary drastically based on the specifics of the company and the employment/equity agreements you entered into, in addition to where you and…
> your equity should be in real shares from the get-go, not options that vest over time
The OP said reverse vesting. Doesn't that mean he does own all his shares now? The company just has the right to buy them back if he leaves (and the cliff is when the percentage they can buy back starts decreasing from 100%).
Re: Ask HN: Co-founder wants me to leave but won't entertain a buy out offer
#320Why do so many people on this thread not understand how a one-year cliff works? The OP already has 40% of nothing. He has to earn that 40% over 4 years but if he leaves within the first year he gets nothing. All he has within the first 12 months is the promise of potentially 40% of something if he sticks around for 4 years. But honestly, as the lawyer in this thread said, this was a crummy deal from the get go. FOUND…
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