Ask HN: How to leave my startup after my stock vested?
I'm leaving because of personal reasons, I still believe in the future of the company and would like to make my exit tidy. After 4 years, the vesting schedule is over, and I own approx 40% of the company. I only have 1 other cofounder and some investors. What do you recommended to do in this situation? How should we structure my transition out to ensure the company keeps running smoothly (decision-making, compensation, incentives)?
6 comments
The business has reached its peak. The remaining person will find it psychologically impossible to create new value working solo, with the knowledge that 40% of it will be taxed by the ex business partner. No investor will put new money into an enterprise where 40% of the cap table is not involved. You are not splitting future growth, you are now dividing present assets as this won’t be a going concern much longer.
Your options are either reduce your stake to keep the business viable for remaining parties, or sell it completely for a fair price. To uncover the hidden fair price, one person decides the share price, and the second decides if they will sell their stake or buy out the first.
Your options are either reduce your stake to keep the business viable for remaining parties, or sell it completely for a fair price. To uncover the hidden fair price, one person decides the share price, and the second decides if they will sell their stake or buy out the first.
This is pretty spot on. I was on the receiving end of this and it’s incredibly challenging mentally to work hard to give away 40% to someone that just split. The comment about not being able to raise money is accurate as well.
Sell your stake for a fair value and wish the new owner luck. You could keep a few percent of stock but not enough to deter potential investors.
Sell your stake for a fair value and wish the new owner luck. You could keep a few percent of stock but not enough to deter potential investors.
It what sense is this "given away", not "earned"?
You should probably consult with an attorney
Probably because an attorney (in this situation) wouldn’t help “ensure the company keeps running smoothly (decision-making, compensation, incentives)”.
I was down voted for offering surefire advice.. Nice..