Here's the scenario my startup is in and I'd appreciate some thoughts on how to solve several issues we have.
We're 3 co-founders (2 biz, 1 dev) and we've been working on an idea for the past ~12 months. We've reached a point where we have differences in business plans and one co-founder now wants out. The departure is amicable, but the other co-founders want to keep going.
The two remaining co-founders cannot afford an equity buyout, so that's off the table. We're working on setting a valuation for the company as of now (roughly calculating development time and hours put into the venture, no other assets) and should agree on that soon. (Assume 100K for simplicity).
The question is how to split the equity down the road.
Suppose each founder now has
33% * 100K. If the remaining founders put in more money down the road to support further development, it's easy, the existing founders are compensated with more shares to match the funds they put in, and the departing founder gets diluted (unless he matches the funds).
But how is the calculation done when the remaining founders want to take into consideration the time they're continuing to put in? Is it reasonable to say that the departing co-founder is immediately discounted by some
% of equity to compensate for the time he's not putting in? Should that decision be deferred to the next time a valuation is set?
Any thoughts, comments or references to similar cases would be extremely helpful. Thanks!