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NTF and investor can simply issue more shares under any number of arrangements; cap tables are not written in stone. If they have a hard time, they might also s
by nickff 6y ago
NTF and investor can simply issue more shares under any number of arrangements; cap tables are not written in stone. If they have a hard time, they might also start a new company, and liquidate all the assets from the current company.
Every ongoing business arrangement relies on goodwill and intent to survive, like any other relationship. Consulting a lawyer with expertise in the area may be a good idea, but the best solution is probably the cleanest and easiest one.
- CyberDildonics 6y agoI don't think letting someone steal from you is ever going to be the "best" solution. Doing what you described is not new or inventive. It isn't going to catch an experienced lawyer off guard.
- AtlasBarfed 6y agoIf there are other employees, wouldn't this require firing all of them and invalidating their equity?
- nickff 6y agoThe closing and re-opening would invalidate everyone's equity, and open the door for a complete re-negotiation. Dilution usually hits people who are gone the hardest (as they usually get nothing out of the new option pool if there is one).