[Need help] Can co-founders of a seed-funded startup take away equity of another co-founder without buyback?
In this scenario, a co-founder is quitting the company after giving 4 years of his life to the startup. Is it possible for the other co-founders to make his equity worthless and take it away at zero cost without a buyback?
How should the ex-founder deal with such a situation without hurting the startup?
I guess if this situation was described in the shareholder's agreement at incorporation of the company or signed after your seed round, the remaining active shareholders might be able to get back (a part of, or entirely) the equity of the departing co-founder at nominal value (reverse vesting or similar setup).