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The biggest question is what was you and your co-founders' legal agreement in the bylaws/operating agreements regarding equity given in exchange for assigning y
by cmapes 12y ago
The biggest question is what was you and your co-founders' legal agreement in the bylaws/operating agreements regarding equity given in exchange for assigning your IP (earlier code hackery) to the entity?
If you don't have any sort of a defined equity arrangement in legal contracts, then you have a problem. It's time to speak with an attorney.
If you have some sort of share vesting schedule which will grant you an equity ownership percentage that you consider "fair" then you should consider moving from your current operational position as a software engineer to somewhere else if you want to stay in operations. Otherwise you can sit it out, keep your equity, and participate at the board level.
There will be lots of advice to just "forget about it and walk away". I believe the advice to essentially just "sit back and take it" to be idiotic. If your original positioning on the team was to be "the guy who programs the first iteration of the software that gets us to market" and you failed at that, I can understand where they're trying to push you out as a co-founder. You essentially were a technical co-founder who only partially fulfilled his/her original promise. No offence. In their eyes, you misrepresented yourself, even if that's untrue because they scope-creeped way past your skill level. But the fact is that there WAS some weight that was pulled by you. So you deserve at least partial compensation, whether or not its in the form of equity (if this was promised to you) or payment, or both.
There's some important variables here that have't been covered (mainly current legal agreements) but the main point I'd drive home is stand up for yourself and don't allow yourself to get power played. Yes the situation is sour, but you should be able to get the rest of your founders to agree that you DID contribute something, (as evidenced by the fact that the CTO wants you to leave in the future, not now) so you deserve some equity/payment even if you end up just leaving with it and participating in a liquidity event in the future.
TL;DR If no legal agreements: attorney. If legal agreements w/vague equity terms: attorney. If legal agreements w/ defined equity program you can live with: leave operations, participate at the board level, get bought out at a premium, or just hold equity and wait for a liquidity event.
Make sure there's some restrictions keeping the board from authorizing 1000000000000000 shares and diluting you out too. Good luck!