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I am an IP/startup lawyer and I know the startup world intimately, having worked for/in one. You might want to arrange a deal with the other members of the star

I am an IP/startup lawyer and I know the startup world intimately, having worked for/in one. You might want to arrange a deal with the other members of the startup to buy you out, since you no longer want to be part of the team. Also, Do you have any emails/voicemails/texts memorializing your 5% equity? The reason I ask is bc sometimes formal written agreements aren't necessary in some cases. From an IP standpoint, if your initial agreement did NOT give all the ownership of the code you've written to the company, then you ARE the rightful owner of the code, doesn't matter how much you were paid/not paid.

AnonProtag 15y ago
I'm in Canada if that changes anything. I do have records stating the equity position, but nothing formal. I am listed as a cofounder in various media we have floating around, from presentation vids to the biz plan, investor sheets and social media presence. The IP lawyer I talked to told me that since I'm under a contracting agreement and I haven't been paid the code is mine. The law regarding this may be different in the states. And yeah I am thinking of getting some non-dilution clauses in place for the likely possibility of an exit. Negotiating this and a licensing agreement for my library is what I think my fuzzy plan is at the moment. My concern is going down a litigation path against a much larger wallet, but I think my case is pretty strong.
- AnonProtag 15y ago
  To put a frame around this. We're expecting to be profitable within the 1st year. We think we won't need any money after this, unless it's a more strategic play and then we'll think of VCs. Our hosting/infrastructure costs are zero. (I'd give away too much info if I said how). We have several LOIs with potential customers. The CEO to be brought his last company to 500m sales (not sure of the time frame on this). We anticipate getting in this range in about 3 or 4 years barring an earlier exit. So that's the playground. Way, way out of my league.
  - lindacambrian 15y ago
    To be honest, I am surprised that your co-founder dares to do this before you guys go live... Everyone knows you do NOT mess with the tech co-founder, especially not pre-launch. To echo the first comment, it sounds like a toxic environment. You gotta get yourself outta there!
- lindacambrian 15y ago
  Don't fret, my friend, It sounds like you are in a very good position to negotiate. The CEO/other members of the team do NOT want a Facebook on their hands, so it's likely that they'd want to work this out either now or later. I am not familiar with Canadian law at all, so unfortunately, I can't help you with that. But if it's anything like US law, all of those informal pieces of "evidence" would be enough to prove your equity. Remember- you have a lot of bargaining chips. You can very strategically negotiate your way to the amount of equity you deserve. Is your company incorporated in Canada or the US?

AnonProtag 15y ago

I'm in Canada if that changes anything. I do have records stating the equity position, but nothing formal. I am listed as a cofounder in various media we have floating around, from presentation vids to the biz plan, investor sheets and social media presence. The IP lawyer I talked to told me that since I'm under a contracting agreement and I haven't been paid the code is mine. The law regarding this may be different in the states. And yeah I am thinking of getting some non-dilution clauses in place for the likely possibility of an exit. Negotiating this and a licensing agreement for my library is what I think my fuzzy plan is at the moment. My concern is going down a litigation path against a much larger wallet, but I think my case is pretty strong.

AnonProtag 15y ago
To put a frame around this. We're expecting to be profitable within the 1st year. We think we won't need any money after this, unless it's a more strategic play and then we'll think of VCs. Our hosting/infrastructure costs are zero. (I'd give away too much info if I said how). We have several LOIs with potential customers. The CEO to be brought his last company to 500m sales (not sure of the time frame on this). We anticipate getting in this range in about 3 or 4 years barring an earlier exit. So that's the playground. Way, way out of my league.
- lindacambrian 15y ago
  To be honest, I am surprised that your co-founder dares to do this before you guys go live... Everyone knows you do NOT mess with the tech co-founder, especially not pre-launch. To echo the first comment, it sounds like a toxic environment. You gotta get yourself outta there!
lindacambrian 15y ago
Don't fret, my friend, It sounds like you are in a very good position to negotiate. The CEO/other members of the team do NOT want a Facebook on their hands, so it's likely that they'd want to work this out either now or later. I am not familiar with Canadian law at all, so unfortunately, I can't help you with that. But if it's anything like US law, all of those informal pieces of "evidence" would be enough to prove your equity. Remember- you have a lot of bargaining chips. You can very strategically negotiate your way to the amount of equity you deserve. Is your company incorporated in Canada or the US?