

Ask HN: Startup owes me money but keep delaying payment. What are my options? - throwaway306PM

I did work for a startup earlier this year. I got paid lower than my usual rate but with an agreement that I get some cash equity and deferred compensation upon raising money.<p>It's been more than 6 months since they raised funding but I have yet to be paid for my deferred compensation.<p>They are also in the process of being acquired. They offered to buy out my cash equity to just half. They said it would a pain having to include my options in the acquisition. I negotiated and we agreed for 80% of the value.<p>I was promised at least 4 times that they will be sending the payment but have missed them all.<p>I cannot take them seriously now and I fear that if this drag on longer I might not get paid especially if they close the acquisition.<p>The money they owe me is in the low 5 figures.<p>What are my options? Any idea how much it would cost me if I get lawyers involved?
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answerly
A pending legal action could put the acquisition in jeopardy. I'd expect that
they would take any credible legal threat very seriously. See if you can get a
lawyer to write a threatening collections letter. That may be all you need to
get them motivated.

It shouldn't cost you very much to get a letter drafted by an attorney. It
took my lawyer about an hour to draft a similar letter in the past, so figure
1-2 hours times your lawyer's hourly rate.

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run4yourlives
Talk to a lawyer, fast.

You're a creditor. Owing somebody money hurts their acquisition negotiations,
which is the reason for their original offer.

Get lawyers involved while the company is still a legal entity. If you delay
until they no longer exist, the new entity may not be liable to pay you either
and you'll be trying to hunt down individual founders, which is not going to
be any easier.

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davidw
> Any idea how much it would cost me if I get lawyers involved?

Ask the lawyers?

If they're in the middle of an acquisition, that might give you some leverage.
I don't think an acquiring company wants open lawsuits...

