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My startup crossed $2M/yr and now co-founder is going for a power grab

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31–40 of 65 posts

Re: My startup crossed $2M/yr and now co-founder is going for a power grab

#31
There is no such thing as 4 people "equally" running a company, even if the equity is equally split, precisely to avoid these types of situations. If a majority of you (or whatever your charter says) are unhappy with the CEO, then you can change the CEO, but until then, someone needs to ultimately make decisions. Who do the two of you report to? Who is in charge? That person needs to figure this out.

I'd also ask everyone in the room: What's in the best interest of the business?

Re: My startup crossed $2M/yr and now co-founder is going for a power grab

#32
1) If it’s not immediately clear who should have a CTO title and why, no one should have it. Would also think you should consider for no one to have a C-suite title except for the CEO with such a small team. You’ll need those titles to be available for when it matters for the company (it doesn’t yet).

2) The CEO needs to make the CTO decision for their team. They can take recommendations or arguments, but they can’t let this org structure problem fall to the team they manage.

Re: My startup crossed $2M/yr and now co-founder is going for a power grab

#33
> CEO and COO said that didn't want to get involved and it was for me and CUXO to sort it out ourselves.

It seems like they're sending you a signal that the CUXO's argument has at least some merit. Last time they were aligned with you and this time they're telling you to sort it out yourself. Ask the CEO and COO is they have some feedback for you that they're holding back on.

Re: My startup crossed $2M/yr and now co-founder is going for a power grab

#35
1st, congrats on $2M/yr accomplishment. Very few ever make it to that level, and far fewer do that in just 3-years.

——-

Some questions that might better influence someone’s response to you:

- Why did two founders recently quit?

- How is that 40% equity being handled (did they take the equity with them)?

- If the 2 departed founders didn’t take equity with them, do you now have 1/3 voting shares? (Since there’s only 3 founders left)

- Do you feel you deserve the CTO title?

- Why do so many people in the company want CTO title? What does CTO title represent to people?

- why do people care about titles when there’s only 17 employees (no intended disrespect with this question)?

Re: My startup crossed $2M/yr and now co-founder is going for a power grab

#36
post #28

Avoid working with people who care primarily about titles. Is the CEO actually a CEO? I.e., does everyone else report to them? If so, they should get involved and help you resolve. If they don’t want to, take your equity, cut your losses and move on.

It sounds like OP cares just as much about titles as the guy who wants to be CTO, tho.

Re: My startup crossed $2M/yr and now co-founder is going for a power grab

#37

A good title to help further his career seems like a valid concern (even if the title itself may not be legitimate), but so are your concerns. You could put the burden of finding a solution on him? Share your concerns - that you did the bulk of back-end technical work, and feel that giving someone else the CTO title would devalue it. If he can find a way to get a better title (CTO or something else) without devaluing…

Appreciate the reply. I think this is probably the best approach, however I find it hard to believe there is a possible title that he could suggest that wouldn't similarly undermine me somehow. I'm trying to avoid the conversation turning into an argument about whose done what for the company because I think it would irreparably harm our already tense working relationship, however I think without a doubt I have overw…

Would CUXO be happy as Chief Product Officer? The whole thing sounds pretty silly, but if you want to be CTO, then CPO seems like a reasonable thing to offer CUXO (if you think he’s any good at product stuff, anyway).

Re: My startup crossed $2M/yr and now co-founder is going for a power grab

#38
This sounds like it's ripe for the you-cut-I-pick process.

Ask him how much equity he would give up in order to have the CTO title. Then after he says how much he thinks the title is worth, you get to pick whether you give up the equity (to him) and get to be CTO, or whether he gets to be CTO but you get a piece of his equity.

Re: My startup crossed $2M/yr and now co-founder is going for a power grab

#39
You have to play hardball. If someone else is being political and you try to avoid politics, you’ll get crushed. The fact that your co-founders are not getting involved means they don’t think your CUXO’s claims are outrageous— that’s a problem because you think you do.

Meet 1-1 with everyone, including the CUXO.

Tell them you don’t support this decision.

Ideally tell them you should be CTO. Making CTO a banner title will keep causing this issue again and again.

Don’t let people walk away from the 1-1 without supporting your claim or giving you a good reason why not.

Write your arguments first. Don’t get emotional. Make an entirely rational argument.

Don’t lose.

Re: My startup crossed $2M/yr and now co-founder is going for a power grab

#40
This is the CEO's responsibility, but if he won't make a decision, you need to be the CEO here. What's best for the company? Does having him as CTO increase or decrease the likelihood you get to the next milestone? Does it enhance or degrade the team narrative? This is important for raising money if you plan to or attracting new talent. (It would also mean you would need to fire him to hire a real CTO if that need arises). If him as CTO hurts the team, the decision is that he can't be CTO. But, you should dig into why he wants this beyond vanity, because there may be other ways of making him happy. (For instance, when two founders are deciding on who's the CEO, oftentimes the one who is not the COO will be made "President". It doesn't really matter, but it makes people feel better).
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