3 ms·

TLDR; Assuming there is no contract (written or verbal) then the fact that you put in roughly the same amount makes it slightly easier to say - Equal Stakes, E

by Pick-A-Hill2019 6y ago

TLDR; Assuming there is no contract (written or verbal) then the fact that you put in roughly the same amount makes it slightly easier to say - Equal Stakes, Equal Share (20% each). Longer version - Ouch. The fact that you are posting it here suggests that there is some disagreement between the 5 of you. Let me guess - you think you should get more as the founder and source of the idea. Person B says "but without me you would not have continued with development, so I should get the same as you". Person C says, "if it wasn't for me then you then you would not have managed to survive or be as profitable (tax expertise)". Person D says something like "well I tuned the algorithms and increased profits by x% so without me there would be no profits". Personally I can't imagine investing 10k in to something without something in writing (in fact I'm truly trying to imagine the scenario and I just can’t). What was the agreement when they invested their money? Not trying to be snarky but I just can't see a situation where the conversation went "We need more money", Person B (or C or D) just went "cool, here's 10k, enjoy".

_pygv 6y ago
The disagreement is mostly between C and B, and C and D. I'm actually the only one being fine with C having as much as A and B. And I want everyone to feel the equity split is fair. Also to clarify, until now we only kept separate trading accounts, so there wasn't really an issue about who own what. Only now we want to put everything under a company.
- Pick-A-Hill2019 6y ago
  Sounds tricky and I hope you manage to find a solution that satisfies all parties. All I would say to each of them (in a round table discussion) is that as Founder you are happy with all (including yourself) receiving an equal share as you consider each of them to have been a crucial part of the success. By implying that you could have asked for a greater share but didn't it may help to sooth the greedy $$$ signs that appear to be about to rip your as of yet to be launched company apart. Good luck & chalk this issue as a Life Lesson. Money, Friends, Co-Founders. Pick two and never mix all three, especially without anything in writing. Friendships go sour all the time, especially when money is involved. If all else fails, try to see if you can find a local mediation service which is both a lot cheaper than sitting in a law office as the clock and bill runs up and also often a skilled mediator may be able to word things in a way that all sides can see what a fair and equitable solution might be. Good luck.
  - _pygv 6y ago
    It's not that big of an issue, we can all talk calmly about these things. I just want a reference point to make sure what each one suggests is not unreasonable

_pygv 6y ago

The disagreement is mostly between C and B, and C and D. I'm actually the only one being fine with C having as much as A and B. And I want everyone to feel the equity split is fair. Also to clarify, until now we only kept separate trading accounts, so there wasn't really an issue about who own what. Only now we want to put everything under a company.

Pick-A-Hill2019 6y ago
Sounds tricky and I hope you manage to find a solution that satisfies all parties. All I would say to each of them (in a round table discussion) is that as Founder you are happy with all (including yourself) receiving an equal share as you consider each of them to have been a crucial part of the success. By implying that you could have asked for a greater share but didn't it may help to sooth the greedy $$$ signs that appear to be about to rip your as of yet to be launched company apart. Good luck & chalk this issue as a Life Lesson. Money, Friends, Co-Founders. Pick two and never mix all three, especially without anything in writing. Friendships go sour all the time, especially when money is involved. If all else fails, try to see if you can find a local mediation service which is both a lot cheaper than sitting in a law office as the clock and bill runs up and also often a skilled mediator may be able to word things in a way that all sides can see what a fair and equitable solution might be. Good luck.
- _pygv 6y ago
  It's not that big of an issue, we can all talk calmly about these things. I just want a reference point to make sure what each one suggests is not unreasonable