How to leave a startup that's asking you to give up your vested shares?

Question

I'm leaving a startup I cofounded due to disagreements over strategy and cofounder conflict.I worked on it for 24 months. We had a vesting schedule in place. I currently have 20% vested.I've agreed to sell back 15% of my vested equity and stay with 5% to help the company succeed. We are about to start raising. So far we've received $25k investment via SAFE + $10k grant w/o equity.Is it reasonable for my cofounder to be asking me to sell back the 15% vested at .00001 (the price I paid two yrs ago)?What other options should I consider?Thanks!

pierat · Accepted Answer

This is definitely a "consult lawyer" question. My guess is they already have done so.And frankly, this is just business. This is part of your compensation. Keep every cent you can. You owe them nothing past the terms of the agreement and legally binding terms.

kelthan · Answer

Yes, it is unreasonable.You have contributed to the growth of the company. Find out what they are selling shares for to new investors and sell back for that, or don't sell back at all. Those shares are part of your compensation for working there and taking the risk of a startup. Don't just give up on the value that you helped to create.

DamonHD · Answer

I don't know. But they will likely need equity to incentivise others. Your remaining stock could be more valuable with the apparently unpleasant path now.

breed101 · Answer

It's not reasonable. They are your shares. Do not sell them back at all. They might be worthless but it's the principle of it.

catlover76 · Answer

Not reasonable, IMO; if you sell back, you should sell back at a premium. Otherwise keep.