1-We're a small startup of two. 2-My cofounder decided she doesn't want to keep working at our company 3-We have a 4 year vesting and 1 year cliff (about 4 months left) 4-We own both 40% each. 5-She is asking for 10% of the company to leave, meanwhile she is not working at all.
Is there any way to deal with this, or is there anyone who've been in a similar position?
Thanks!
Why should she, who is leaving, get paid in more equity?
Can you raise equity $$ from the remaining shareholders, asking her as well. If she fails to subscribe for more shares = diluted down.
You can not afford a non-productive slug on the wall in control of 50% = ability to stall progress.
In any departure, the company has buy her shares for their cash value. She can not demand free equity to make her up to 50%. You can sell her equity to reach 50%, but in small startups, you need working partners, not drones who own 50% and wait for success so they can cash in.