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The equity is vested, you own it. You have no obligation to return or surrender it or even sell it. This is why companies have vesting schedules. Additionally
by twunde 11y ago
The equity is vested, you own it. You have no obligation to return or surrender it or even sell it. This is why companies have vesting schedules. Additionally, starting a new company with the same idea with the same team would most likely open them up to legal liability. The only thing to remember is that the equity is only valuable if the company succeeds, so it may be worth compromising by having them buy you out, or giving the company an option to buy you out at the next funding round.
Do yourself a favor and talk to a startup lawyer (one that's not used by any members of your team). S/he will be able to explore your options with you and help you decide on a good course of action.
- spacecowboy_lon 11y agoAnd get any agreement in writing if you are going to wait till next funding round you should say you want a multiplier ie pay me x now or x +50% in 6 months x +100% in a year.
- acjohnson55 11y agoWhat do you mean by a multiplier? Why not just cash out at the valuation established in the funding round?
- spacecowboy_lon 11y agoPayment for the extra risk and to take account of the time value of money e.g. $1000 now is worth more than $1000 in a years time.
- k__ 11y agoCan't the other owners simply do a "squeeze out"?
- imjk 11y agoCan you explain this?
- joshfraser 11y agoI believe they mean granting additional stock to everyone else on the cap table except you.
- k__ 11y agoI once read that one owner can force another owner to sell their stock if the first one owns the majority of the stock. Like if you own 95% and another one just 5% you can make them sell.