Ask HN: Leaving as founder, what happens with equity?

I'm leaving a startup I founded due to disagreements over team/strategy. I worked on it for about half a year.

When we founded the company, there was prior work done, so we vested some equity up front to acknowledge that. Since that time, we've pivoted and also recently added team members. Now that I am leaving, the other founders are asking me to return some/most/all of the equity that was vested up front.

Is this reasonable? Do I have any obligation to return/surrender the vested equity?

Additionally, when I voiced objections to returning the vested equity, they brought up the fact that they may start a new company on the same idea and reset the entire equity metrics altogether. Is this common?

You receive the equity not for being around on the day the decision to found a company was taken, but for being around from day 1 until the company stops being a startup. (Well, some of the equity may also be for other reasons.)

The other founders expect you to be around during that period. One commits in part because the others do.

When you leave earlier, you should estimate how much of the period is left and talk to the others about the portion of equity that corresponds to that period — how big it is and how you can use it for the betterment of the company. Are some new people taking over what you would have done? Perhaps they should get some of the equity, on fair terms?

The equity is vested, you own it. You have no obligation to return or surrender it or even sell it. This is why companies have vesting schedules. Additionally, starting a new company with the same idea with the same team would most likely open them up to legal liability. The only thing to remember is that the equity is only valuable if the company succeeds, so it may be worth compromising by having them buy you out, or giving the company an option to buy you out at the next funding round.

Do yourself a favor and talk to a startup lawyer (one that's not used by any members of your team). S/he will be able to explore your options with you and help you decide on a good course of action.

The correct thing to happen in this scenario is for the other founders to buy out your share based on today's valuation (which should be modest but accurate according to what you've been telling investors). Anything else will involve a lot of lawyers and grief.

If they walk away and start their own company, they're handing control of this company to you along with all its investment and property, and that no-poaching clause in your contract says they can't hire away your team. I don't think they want to do that.