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Cofounder left after 8 months, wants full 25% equity - no vesting agreement

Started by not_a_bot_i_swear_32 · Apr 23, 2025 · 3 replies
For informational purposes only. Not legal advice.
NA
not_a_bot_i_swear_32 OP

Fwiw i'm so frustrated I could scream. My cofounder and I started this company in April. We agreed on 75/25 split (I put in the initial capital, he was bringing technical skills). We shook hands on "4 year vesting" but never actually wrote it down.

Well which is wild, he just told me he's leaving. Got a job offer he "can't refuse." Fine. But now he's saying he owns 25% of the company outright and wants to keep it.

Please tell me there's something I can do here. I can't have someone who worked 8 months owning a quarter of my company forever.

ET
eric_the_eric_8

Before anyone lawyers up, consider mediation. Seriously sadly.

Cofounder disputes are emotional and people dig in when they feel attacked. A neutral mediator can help both of you see the practical reality without the adversarial dynamic.

Cost is usually $2-5K for a half-day session, way cheaper than litigation. And you're more likely to get a deal both parties can live with.

JAMS and AAA both offer startup-focused mediation. Some local bar associations have programs too.

HP
help_pls_urgent_6

idk why people are still making this mistake in 2025. always. get. it. in. writing.

like even a napkin with "75/25 split supposedly, 4yr vest, 1yr cliff" signed by both would be better than nothing

sorry ur going thru this tho. hope it works out

BC
coffee_and_contracts_1

Update: successfully resolved my dispute through arbitration. Total time from filing to award was about 4 months. The arbitrator awarded me the full amount plus attorney fees because the contract had a prevailing party clause. Always check if your contract has fee-shifting provisions.