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Ask NewsY - How to handle early founder severance

• Readmore 19y ago
  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?
• theremora 19y ago
  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.