My fiance and I started a business together 2 years ago. He quit his job and I kept my full-time job. We raised $300K from friends and family via promissory notes convertible to shares when a larger funding event occurs (angel or Series A).
Despite many successes and positive publicity, we still have not closed additional funding for him to take a salary and hire other staff to support him. He's tired of doing it on his own, and now wants to take a full-time paid position in another company. We also emptied our retirement and ran up $70K of debt on our credit cards, which needs to be paid ASAP. I'm amenable to this while we continue to look for funding.
Neither of us is on a vesting schedule. Each of us owns 35% of the company's shares, with the remaining 30% on reserve for the promissory note conversions and shares we issued as compensation to people serving the company under management services agreements.
The other reason it may not make much sense for him to work there is that it has turned into a technology company, which is not something for which he has experience. While it has ended up being much more lucrative for investors than originally planned, he may not be the best person to work there anyway.
What happens to his shares if we do get funded and he chooses to remain in his new job? And maybe a more important question is this: Will an investor ever invest in a company whose founders do not work there full-time, as the business has evolved into something else for which the founders have little experience but is still a lucrative investment?
Thanks for your input!