Assistant Manager Administration at Private Company
So we were working on a project where we were a total of 4 cofounders initially. 1 of the cofounders had to leave 3 months after incorporating due to family issues which made it imposible for him to take on the risk of being the cofounder of a potential hyper growth company. Especially the financial risk and salary cut.
The big mistake that we made was that we did not put a vesting Schedule for the 4 cofounders at the beginning. Now the cofounder that has left owns 25% of the business and is not willing to return any of it as he feels he is entitled to such equity for coming up with the idea.
The issue that we are facing now is seed investors that are telling us that they are not willing to fund a company where there is already 25% of equity out of the door that is useless.
What are our options and what would you recommend doing?