
Ask NewsY - How to handle early founder severance - Readmore

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Readmore
The startup I'm working on had an interesting start and we have 7 'founders'
involved. Only 5 are really contributing anything to the project even though
the others somehow seem to feel that they are entitled to a share in the
profits. At this point it's not much of a problem but when we get funding I'd
like to make them an offer to leave and give up their rights to the company.
I'm thinking of offering 1% of the profit from any company sale or an option
on 1% of the publicly available shares if we go public. (That's for each of
them so basicaly give away 2%) Do you think this is a good move? Has anyone
dealt with something like this before?

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theremora
do it now. when the money is on the table they will get greedy and this may
potentially keep you from funding. ie legal issues.

