My question is this; I have four founders with the following ownership:
Executive/founder/Me 1: 25%
Executive/Co-founder 2: 20%
Executive/Co-founder 3: 15%
Corporate Partner/Co-founder: 40%
After 2 Million Investment from corporate partner it looks like this:
Executive 1: 20%
Executive 2: 15%
Executive 3: 10%
Corporate Partner/Investor: 55%
I am not concerned with the shares awarded from the investment. But the shares they owned as partner, and the shares each other founder owns I want to be vested over at least 2 years. I don’t want anyone to get a “free ride”, and if they need to be fired I don’t want them to have a larger % of the company or bored seat.
This is something that I plan to bring up to my lawyer next week, but if possible I’d like to get some feedback and what options that might be available to me.
What I am curious about is:
1.Can I request that the co-founder shares be vested over 3 years? And mine be full vested? I’ve been working on the company by myself since 2008 and only recently took on co-founders when we had a term sheet.
2.Example, if Executive 2 was fired or moved to a different role, say COO to CFO what would happen to his shares?
3.Currently there are 5 board seats , I plan to add 1 more once we hire our CTO. In the event of a tie as founder could my vote break the tie?
It's not clear what your problem nor question is. Please re-read your question next time to save everyones time and energy (we're all in startup crunch too!).
I would be wary of early investment that makes the founders' stake(s) less than 50%. That is demotivating and problematic.
You really need to rethink a lot of things here in my opinion.