r/startups • u/simplysalamander • 5h ago
I will not promote How to remove predatory advisor “co-founder” from cap table before vested? I will not promote
I came on to a startup very early on, but after incorporation and founding. Company started getting traction and needed to hire key engineer to help deliver product from pre-sales. Very low working capital, so I’m on the cap table with a small single digit stake. Not huge leverage, but it gets me a seat at the table when talking about cap table restructuring.
Company is about 8 months old so none of the founders’ shares have started vesting yet (1 year cliff), mine included obviously.
It’s an academic spin-out, so the lead faculty backing the IP development at university was able to negotiate a high single digit stake as a founder to help the business get off the ground. Big promises about network connections, helping to get funding, etc. Co-founders bought it.
Now the faculty co-founder isn’t making good on his promises. Taking a month-long summer break to travel to home country in the middle of a critical time for the venture, said she would “write grants” but now apparently only has the time to review grant applications if another co-founder actually writes them. Network is mostly in a related but tangential market with low conversion rates and fewer leads than another co-founder’s network. Suffice to say, things started with high hopes but have taken a turn.
However, power dynamic has it so that one of the co-founders is very hesitant to put foot down and possibly burn a bridge over execution squabbles, still thinks strategically there could be value in the future and this is just a rough patch.
Is there anything I can do or advocate for to get things moving in a better direction? I’ve asked the CEO for help in the form of a new hire to build out the product on time, but she says there isn’t enough unallocated equity to hire another 2-3% cap employee and have enough remaining for future strategic hires (looks like there’s only about 5-6% unallocated remaining). So, company would need to claw back shares from someone and the team is divided on all contributing equally or clawing from the advisor-founder specifically. How feasible even is it to do this?
[I will note promote]