throwaw87

I quit my job to start a company, trusting the legal to my business partner. We exchanged a written egalitarian cap table, but he secretly gave himself >100x more shares than listed. Yet, he called me "co-founder" and wrote that I held the most shares of anyone. In actuality, I vested <0.5%/year. Nearly a year in I found out, causing me to leave after having drained my savings in exchange for almost no equity.

Thanks, good advice! Wanted to see if there were any options in advance, since it's hard to research online.

Thanks and agreed -- it is always best just to be honest and upfront about what options exist.

Thanks for the reply. Yes reluctantly, as long as we can satisfy the deferred lawyers. Hopefully it wouldn't make for a complex story when we're trying to raise a seed round - could look like we don't know what we're doing.

Was hoping a way might exist without having to dissolve since we're also short on cash.

We planned on being co-founders all along, but he came in slightly later after the legal was initially done -- then it took a while longer than I hoped to raise the seed due to COVID. He wouldn't appreciate me reneging on that, especially since he's been equally integral to the business as myself.