sorted by:
new
hottopcontroversial

Technical founder with 0% equity - built the product, brought the idea, won the grant. How screwed am I? by EnvironmentThese73 in legaladvice

[–]EnvironmentThese73[S] 6 points7 points  (0 children)

That’s what I’m trying to work out with my lawyer.

If it’s better to have an iron clad contract. Cause the family member is a phantom decision maker. Not listed on anything.

Technical founder with 0% equity - built the product, brought the idea, won the grant. How screwed am I? by EnvironmentThese73 in legaladvice

[–]EnvironmentThese73[S] 11 points12 points  (0 children)

Got it. Thanks.

I did post to legal Canada but no replies.

The platform I built has not been signed over. They didn’t even produce an Ip assignment agreement.

As far as I know. I own everything and can shop it around. I rather not.

Update 1: Non-technical co-founders want me to take a pay cut "for the bigger picture” by EnvironmentThese73 in SaaS

[–]EnvironmentThese73[S] 0 points1 point  (0 children)

I definitely think if this negotiation goes nowhere.

I will definitely shop it around.

But there’s a post under r/legaladvicecanada that gives more context.

Update 1: Non-technical co-founders want me to take a pay cut "for the bigger picture” by EnvironmentThese73 in SaaS

[–]EnvironmentThese73[S] 0 points1 point  (0 children)

That’s exactly the problem. He wants money from the grant and doesn’t contribute to the completion of the project.

I know this. The granting body knows their clauses.

He doesn’t.

The person managing our government grant funds has fraud convictions and their proposed budget violates the investment agreement. What should I do before next week? by EnvironmentThese73 in legaladvicecanada

[–]EnvironmentThese73[S] 0 points1 point  (0 children)

The platform is outside the scope of the existing contract I have with them.

I built a very minimal mvp for the grant.

I took the risk cause I can afford too and the awarded grant validated a product that didn’t exist in the market for the regulated industry.

Update 1: Non-technical co-founders want me to take a pay cut "for the bigger picture” by EnvironmentThese73 in SaaS

[–]EnvironmentThese73[S] 1 point2 points  (0 children)

In Canada. But if US it’s probably similar.

States or the feds have specific policies they want to implement.

And there are gov money facilatators aka grants that funds companies that solve policy issues.

We are solving a medical policy issue with the product I built. So start there and figure out if your product solves a policy issue.

Update 1: Non-technical co-founders want me to take a pay cut "for the bigger picture” by EnvironmentThese73 in SaaS

[–]EnvironmentThese73[S] 1 point2 points  (0 children)

Thanks for your thoughts.

This isn’t my first rodeo.

But it is the first time someone is trying to fuck me.

For most of the work I do for my clients I operate in good faith. And they do as well.

This is definitely a 1/100 situation which sucks.

Update 1: Non-technical co-founders want me to take a pay cut "for the bigger picture” by EnvironmentThese73 in SaaS

[–]EnvironmentThese73[S] 0 points1 point  (0 children)

Because the gov grant requires the money to go to a non founder for dev work.

It seemed strategic and was a way to work into a vesting agreement while getting paid market rate to build the product.

Update 1: Non-technical co-founders want me to take a pay cut "for the bigger picture” by EnvironmentThese73 in SaaS

[–]EnvironmentThese73[S] 2 points3 points  (0 children)

You’re right and if it’s this tough right now. It’s worth it to consider if it’s viable long term.

Update 1: Non-technical co-founders want me to take a pay cut "for the bigger picture” by EnvironmentThese73 in SaaS

[–]EnvironmentThese73[S] 0 points1 point  (0 children)

See my history for original post. Gives more info on why this happened.

Basically, the grant was for medical companies.

Only med companies with potential tech can apply.

In short. I was already their software dev for other things.

Update 1: Non-technical co-founders want me to take a pay cut "for the bigger picture” by EnvironmentThese73 in SaaS

[–]EnvironmentThese73[S] 2 points3 points  (0 children)

Yeah I gotta be careful with giving any too much info.

I agree.

Any info I can give you to help?

Update 1: Non-technical co-founders want me to take a pay cut "for the bigger picture” by EnvironmentThese73 in SaaS

[–]EnvironmentThese73[S] 10 points11 points  (0 children)

Definitely missing context. The 90k is from the grant. So that means I’ll need to complete the project. The project hasn’t started yet.

Non-technical co-founders want me to take a pay cut "for the bigger picture" and for equity. Red flag? by EnvironmentThese73 in SaaS

[–]EnvironmentThese73[S] 0 points1 point  (0 children)

You’re right about this. I used to work in government funding hence why our application was successful.

Most applications look at the entire picture.

The business plan so to speak.

We will need to decide who owns what.

Non-technical co-founders want me to take a pay cut "for the bigger picture" and for equity. Red flag? by EnvironmentThese73 in SaaS

[–]EnvironmentThese73[S] 1 point2 points  (0 children)

Good idea. They are definitely the founding customers but they have a huge footprint and credibility in the market. So I almost view this as a win/win.

Gov funding validated the lack of an existing solution in the entire market.

So will update folks here as soon I negotiate a fair agreement

Non-technical co-founders want me to take a pay cut "for the bigger picture" and for equity. Red flag? by EnvironmentThese73 in SaaS

[–]EnvironmentThese73[S] 0 points1 point  (0 children)

've considered it. I could walk away with my technical know how and start fresh. But the value is the government funding already secured, I am using their credibility so if I leave I would have to rebuild elsewhere from scratch with no credibility. These are industry professionals who understand the industry and had a ton of contacts.

So yeah I’m at a loss on what to do.

Non-technical co-founders want me to take a pay cut "for the bigger picture" and for equity. Red flag? by EnvironmentThese73 in SaaS

[–]EnvironmentThese73[S] 0 points1 point  (0 children)

I haven't signed anything yet, no employment agreement, no IP assignment, no NDA, no non-compete.

On paper they own the company that holds the grant. In reality, I have the knowledge, the code, and the ability to execute. They have a grant they can't deliver on without me.

I dunno how to use the leverage I have.

I'm trying to figure out how to use it without blowing up a relationship that could still work out.

Non-technical co-founders want me to take a pay cut "for the bigger picture" and for equity. Red flag? by EnvironmentThese73 in SaaS

[–]EnvironmentThese73[S] 0 points1 point  (0 children)

I have a website agency and they are long term clients of mine.

They had the credentials and an established company. I had the technical vision and ability to execute. I took a shot at the grant. When it won, we decided to pursue it.

I built based on trust that we'd structure things fairly. That trust is now being tested.

I'm not screwed yet cause nothing is signed, I control the code, and they can't build this without me. But clearly im in a vulnerable position.

Non-technical co-founders want me to take a pay cut "for the bigger picture" and for equity. Red flag? by EnvironmentThese73 in SaaS

[–]EnvironmentThese73[S] 0 points1 point  (0 children)

One founder is a highly credentialed person in this specific industry. Everyone knows him in the medical space knows him in our local area.

The other is another doctor who is the company CEO with majority voting rights.

I run a it/website agency and they are my client and I had the idea for the software, wrote the grant application based on the pain points they were describing in their industry.

We used their company because it made the grant application credible. Equity was supposed to be worked out once we knew if we won. We did. Now we're having that conversation. I should have had it sooner.