

One of our founders left with 5% equity vested -- fundraising red flag? - cwilstop

We're looking to fundraise and don't want this to be a red flag, but we don't want to screw him over.  Suggestions?<p>The team is fine with his current equity position, but this could look bad to investors.  He also put in $10k to support company costs and a year of work.  He's a good guy, but there wasn't a full-time role for him any more.  Is there a way to leave him with a solid stake while not raising concerns when fundraising?  Thanks all.
======
jdg
It's dead equity and at some point in most every companies life, it happens.

I wouldn't worry about it too much.

~~~
PythonDeveloper
Unless he has a non-dilution clause. If he does, it will likely become a very
sticky issue with VCs.

~~~
cwilstop
there's no non-dilution clause. it's more that this never would have gotten
off the ground without him, so we'd rather not knock him low.

