
Co-founder pushed out - Weelunk
I&#x27;m being asked to leave a startup I&#x27;ve been with for almost 2 years, not due to performance but because the other two founders want more equity and think they can &quot;take it from here&quot;. We each agreed to split 1&#x2F;3 of the equity in 2015 but we didn&#x27;t sign a founders agreement (only agreed by email).<p>Any advice how much % I should take and any other demands I should make? I don&#x27;t see it working out with these guys. Thanks!!!
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CalChris
That situation is actually covered in a short little book, _Dead On Arrival_.
Basically, a legal threat by you would make that company difficult if not
impossible to fund. DOA.

[https://www.amazon.com/Dead-Arrival-Avoid-Mistakes-Start-
Up/...](https://www.amazon.com/Dead-Arrival-Avoid-Mistakes-Start-
Up/dp/1457509806)

That and you should get a lawyer.

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Weelunk
Thanks, CalChris and eric. A lawyer I have but not one versed in these
situations. He is happy to sue (he's a lawyer) but are there any other
insights from the book on how to leverage the situation and maximize my % or
what is a typical settlement? Thanks again.

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brudgers
The more you take out, the more you litigate, the less likely the company is
to succeed. Maybe that's your goal. Maybe it isn't.

My advice is:

0\. Realistically assess how much money is actually involved right now and
what the odds are that it is significantly more at some future time.

1\. Think about what you really want and then act upon it.

2\. Realize that a nasty legal fight is going to suck up your energy and time.

[IANAL]

It does not matter what a typical settlement is. It matters what happens in
this particular context, with the particular people involved, at this
particular time.

If you have a realistic current valuation of 1/3 ownership that discounts
future value for time and risk, one option is to negotiate a buyout toward
that value. This allows you to walk away.

If the realistic current value is zero or close to it (i.e. significantly less
than a few or one hundred thousand dollars), maybe it is worth sitting tight
beyond minimal actions that clarify your claim and seeing what happens over
the next few years. If the stake becomes significantly more valuable, then it
might be worth a nasty legal fight. It probably won't.

Essentially, the big decisions are

1\. Whether to play long term or short term.

2\. Whether destruction or success is the preferred outcome.

3\. Whether to look at the pie as finite size (in thirds) or potentially huge
-- a tenth of a unicorn is a lot of meat.

I had a somewhat parallel experience many years ago. One day, in the midst of
it, I decided what kind of person I wanted to be. In that sense it worked out
well.

Good luck.

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ericcoleman
Get a lawyer.

