Took an equity position as technical co-founder plus cash incentive and they don’t want to pay now. Contract is a bit of mess on top of it.
I’m owed multiple 6 figures for promised sweat equity, but the company isn’t generating what anyone thought it would. There was never a contingency based on success of the company or revenue generated.
My choices are basically sue, or try to dissolve company and negotiate to keep all rights to all digital assets, trademarks, domain, etc.
I’ve spoken to many lawyers and all have different opinions. I initially thought, hell yes it’s worth it to sue for $250k owed to me. But, it’s really not looking to be a good option after all.
The problem is I have little interest in the industry even if I did retain all IP to myself.
Kind of a conundrum.
Would love to hear some perspectives from others who have faced similar circumstances.
Wealthy people often value their time more than money. You can tell them you’d like to end this without wasting anyone’s time in court so if they could give you a % of what they owe you (let’s say 50%) you will all be able to move on quickly.
Okay after reading all your comments, I am going to be brutally honest with you.
- The company made 500k last year. Meaning you do have traction
- You are a co-founder with 30% equity, not an employee with 5% sweat equity
Are the other co-founders also taking 250k cash salary as you claim you are owed?
I think you are just being inflexible and probably like an a***le. Startups are hard and unpredictable, yes they probably did plan to take a salary of 250k once they are profitable but it didn’t happen… YET. But I think it has the potential become profitable and has some traction since you said the company made 500k last year, which is actually a pretty good.
You need to start acting like a co-founder and help the company succeed. Now if you were offered 5% sweat equity and were promised a salary in cash, then it would be different, but I don’t think this is the case here.
Don’t do anything stupid and definitely don’t sue, otherwise words gets around and you will never be a technical co-founder ever again. Yes your cofounders maybe multi millionaires but you don’t have any claim on their personal assets.