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.
I don’t think I follow.
You talk about sweat equity but make it sound like they owe you cash. What is it equity or cash?
Also you talk about “there not being a contingency on the success of the company” but say you’re a co-founder.
Are you an employee or a co-founder? If a co-founder then of course it was dependent on the success of the company. A co-founder is responsible not just for eg writing some code but for the overall success of the company, and if it isn’t you’ll end up with some experience and not much else. If more like an employee or contractor then sure sue for the money owed, come to a settlement or bankrupt the company, and get another job.