Comment by throwaway-xx 4 days ago
interesting, i might end up doing something similar. if you don't mind me asking, how much did you sell the remainder of your shares for? was it close to your FMV? i feel like i'm already being negotiated hard by being forced to sell my equity to minimize dead equity and then instead of selling at the 409A valuation, being sold at the FMV seems like i'm losing another battle. thoughts?
Oh, also: if you feel like you're being forced to do anything, or negotiated hard against at all, or losing battles, just lawyer up. Depending on your jurisdiction you could start saying things like, "I dunno, sounds like oppression -- let's just do what's best for the company here".
seems like i'm losing another battle
If you frame it as a battle, you are already losing.
Because it is a battle where you are outgunned and out organized.
And in a battle you go from being a former employee/founder to an existential threat while burning your relationships.
If you need your initial investment back you could also take a note payable.
Yes, so i had another cofounder join in, with the previous cofounder exit, so first we sold the shares to the new cofounder at FMV and the company returned the sweat equity to him at FMV. Honestly, the best thing is to get a lawyer who has done these transactions before and once you have amicably communicated let the lawyer take this up, it will drain your energy otherwise.