I've been working for a startup for about a year now. I've written many thousands of lines of code for them. The founder has lied to me several times, gone ballistic on me and is one of those ultra paranoid crazies. If I knew this about him when I started I would never have worked for him. I've been promised a large amount of stock months ago and haven't received my stock agreement yet. We now have a well known investor that has just agreed to invest. Over the past few months I've been told "hey your stock agreement is coming". Then the other day I get handed some paperwork to sign: NDA and contract. They say "sign these and you'll get your stock agreement". The problem is that the contract is outrageous and takes away every right I have. Clearly I'm not going to sign it. I just want to know what's in my stock agreement and they're telling me "hey that's up to the investor and his law firm". My lawyer is saying "don't sign anything until we see what's going to be in that stock agreement". So we're kind of at a deadlock. Advice?
Are these founders trying to screw me?
1–10 of 66 posts
Re: Are these founders trying to screw me?
#2first and foremost, is this really still worth it to pursue for you? sounds like its a stressful, difficult situation.
ask to see if you can sign a NDA specifically with respect to the stock agreement, maybe?
i'd also find out from your lawyer, if you can, exactly what your rights are. have you been officially working for them? is that code technically still yours? what other things have you signed? etc..
Re: Are these founders trying to screw me?
#3first and foremost, is this really still worth it to pursue for you? sounds like its a stressful, difficult situation. ask to see if you can sign a NDA specifically with respect to the stock agreement, maybe? i'd also find out from your lawyer, if you can, exactly what your rights are. have you been officially working for them? is that code technically still yours? what other things have you signed? etc..
You're right it is very stressful and difficult. I've thought of walking away many times since in my opinion dealing with dishonest people is not worth it. I haven't signed anything ever with them. It's all been on good faith. I've been doing work on their servers and checking it into their repository I'm not sure what that means. Up here in the north east where there isn't a large pool of investors / firms like silicon valley I feel pressure to comply so this investor doesn't vanish.
Re: Are these founders trying to screw me?
#4From past experience, if it is a good idea for a company, and the sole problem is that the founder is a psychopath, I'd just steal all the code you've written and form your own company and poach the investors. Worked for Zuckerberg. Of course, YMMV.
Re: Are these founders trying to screw me?
#5From past experience, if it is a good idea for a company, and the sole problem is that the founder is a psychopath, I'd just steal all the code you've written and form your own company and poach the investors. Worked for Zuckerberg. Of course, YMMV.
it is a good idea ... in a perfect world this sounds ideal :)
Re: Are these founders trying to screw me?
#6first and foremost, is this really still worth it to pursue for you? sounds like its a stressful, difficult situation. ask to see if you can sign a NDA specifically with respect to the stock agreement, maybe? i'd also find out from your lawyer, if you can, exactly what your rights are. have you been officially working for them? is that code technically still yours? what other things have you signed? etc..
You're right it is very stressful and difficult. I've thought of walking away many times since in my opinion dealing with dishonest people is not worth it. I haven't signed anything ever with them. It's all been on good faith. I've been doing work on their servers and checking it into their repository I'm not sure what that means. Up here in the north east where there isn't a large pool of investors / firms like sili…
if you didn't sign anything at all, you might want to talk to your lawyer about IP laws and also talk to this investor in a one-on-one meeting, talking about whats happening.
just because they have and are using your code might not necessarily mean that they can continue to do so without your permission, if you didn't sign anything.
/not a lawyer
Re: Are these founders trying to screw me?
#7Are you getting paid a salary for this work?
Re: Are these founders trying to screw me?
#8I have been in this same position, I relied on promises for 2 years and what it got me was 6 day workweeks and 14 hour days for a small salary with no upside. All I had to do was ask for a raise, but I never did because I thought I would make the money later. Given the chance again I would have worked 5 day workweeks and regular days. I have nothing to show for that period of my life.
Personally I feel you still own this situation. You can either rip up there paperwork for dramatic effect or ask for (and get) a raise.
Re: Are these founders trying to screw me?
#9It's been my experience that for every entrepreneur who realizes that it's better to have a smaller share of a bigger pie, there are three who would rather give up a kidney than stock. And, frankly, your chances of getting anything don't improve as the company becomes more secure and established.
Re: Are these founders trying to screw me?
#10I am surprised you've been waiting for a year. You should
already agree and demand they give you the percentage they promissed.
It's OBVIOUS they are trying to screw you.
"I've been working for a startup"
Did you get paid for the work you did? If no, then probably you still own the code. Check that with your lawyer.
In case you decide to leave now will you still own the code? If yes, then you know what to do.