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.
Are they trying to keep running the company? Raise money in the future? If they are trying to keep going, a lawsuit would drag them down especially if they are trying to raise. But it sounds like they are just giving up on the company. I can’t see how fucking with a 30% owner would be a good idea if they want to continue. I’m not a lawyer, but I don’t think you even need to sue now. You could wait and see if they continue and have something to lose and then sue the company at which point they might be more willing to settle. But honestly it sounds like it’s a wrap - in which case if there are still assets of value remaining that they want to liquidate or pull out, you could have some leverage to settle. Again not a lawyer but just thinking through where leverage is.