
Ask HN: How to leave my startup after my stock vested? - throwaway2687
I&#x27;m leaving because of personal reasons, I still believe in the future of the company and would like to make my exit tidy. After 4 years, the vesting schedule is over, and I own approx 40% of the company. I only have 1 other cofounder and some investors. What do you recommended to do in this situation? How should we structure my transition out to ensure the company keeps running smoothly (decision-making, compensation, incentives)?
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e1g
The business has reached its peak. The remaining person will find it
psychologically impossible to create new value working solo, with the
knowledge that 40% of it will be taxed by the ex business partner. No investor
will put new money into an enterprise where 40% of the cap table is not
involved. You are not splitting future growth, you are now dividing present
assets as this won’t be a going concern much longer.

Your options are either reduce your stake to keep the business viable for
remaining parties, or sell it completely for a fair price. To uncover the
hidden fair price, one person decides the share price, and the second decides
if they will sell their stake or buy out the first.

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source99
This is pretty spot on. I was on the receiving end of this and it’s incredibly
challenging mentally to work hard to give away 40% to someone that just split.
The comment about not being able to raise money is accurate as well.

Sell your stake for a fair value and wish the new owner luck. You could keep a
few percent of stock but not enough to deter potential investors.

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ghoji
It what sense is this "given away", not "earned"?

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Kazooie_Bird
You should probably consult with an attorney

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throw03172019
Probably because an attorney (in this situation) wouldn’t help “ensure the
company keeps running smoothly (decision-making, compensation, incentives)”.

