5 ms·

Hopefully someone with more experience can chime in here, but what kind of deal do you have with him (i.e. can you fire him)? Either way, I'd consult with a law

Hopefully someone with more experience can chime in here, but what kind of deal do you have with him (i.e. can you fire him)? Either way, I'd consult with a lawyer to see what your options are

crushersk 2y ago
Yes we can fire him, but that doesn't solve our issues with his shares. Our investor would put up more money for development, but not while the CTO is involved with the company anymore. We would much rather continue working on our own without him.
- passwordoops 2y ago
  Then talk to a lawyer specializing in start ups asap
- JumpCrisscross 2y ago
  > not while the CTO is involved with the company anymore Fire the CTO and ban him from the premises. You and your investor control 95% of the company, you can more than easily ensure he is a total non-entity to your company forever.
gigatexal 2y ago
Surely should be doable to buy the co-founder with 5% ownership out? But yes talk to a lawyer no HN help will pale to that of an actual lawyer.
- crushersk 2y ago
  How would we value his 5% shares of a company that has no money now, no product, no revenue. We have some designs, brand design etc, valued patent (although 4 years old now). But we need to do new hardware design, still develop our software.
  - passwordoops 2y ago
    How was it valued in the first place?... Talk to a lawyer
  - gigatexal 2y ago
    Double the initial valuation and give them that divided by 20. Then you can move on. Just a wild thought though.
    - ozim 2y ago
      Guy still doesn't have to sell his shares, he still might want more and you cannot force someone to sell off his shares - only way is to agree on price he will accept. You still might make reasonable arguments but yeah making arguments doesn't make the deal, other guy agreeing makes the deal.
    - fakedang 2y ago
      His initial valuation is itself questionable. How is 250k at a 1m valuation equal to 70% for the investor? Sounds like an error on OP's part in the post, or a very painful mistake irl.
  - deleted 2y ago
    [deleted]

Hopefully someone with more experience can chime in here, but what kind of deal do you have with him (i.e. can you fire him)? Either way, I'd consult with a lawyer to see what your options are

crushersk 2y ago

Yes we can fire him, but that doesn't solve our issues with his shares. Our investor would put up more money for development, but not while the CTO is involved with the company anymore. We would much rather continue working on our own without him.

passwordoops 2y ago
Then talk to a lawyer specializing in start ups asap
JumpCrisscross 2y ago
> not while the CTO is involved with the company anymore Fire the CTO and ban him from the premises. You and your investor control 95% of the company, you can more than easily ensure he is a total non-entity to your company forever.

gigatexal 2y ago

Surely should be doable to buy the co-founder with 5% ownership out? But yes talk to a lawyer no HN help will pale to that of an actual lawyer.

crushersk 2y ago
How would we value his 5% shares of a company that has no money now, no product, no revenue. We have some designs, brand design etc, valued patent (although 4 years old now). But we need to do new hardware design, still develop our software.
- passwordoops 2y ago
  How was it valued in the first place?... Talk to a lawyer
- gigatexal 2y ago
  Double the initial valuation and give them that divided by 20. Then you can move on. Just a wild thought though.
  - ozim 2y ago
    Guy still doesn't have to sell his shares, he still might want more and you cannot force someone to sell off his shares - only way is to agree on price he will accept. You still might make reasonable arguments but yeah making arguments doesn't make the deal, other guy agreeing makes the deal.
  - fakedang 2y ago
    His initial valuation is itself questionable. How is 250k at a 1m valuation equal to 70% for the investor? Sounds like an error on OP's part in the post, or a very painful mistake irl.
- deleted 2y ago
  [deleted]