I started the company (Mobile App) at end of 2011, solo, and doing everything on my own. My Wife, who has full time job, agreed to let me go freely to chase my dream, she will support the family expenses (Children’s education, medical, housing load, and etc)..
In 2012, I met my cofounder, and we have raised a couple of small seed rounds (Angel, small VC) to run the company, and since then the company is doing fairly ok. We’ve been featured on major news, users are growing, we grew from a team of two to team of five, and we have some revenue. My cofounder and I draw a small salary to support our day-to-day expenses.
Now, when we are about to close a bridge round before our major Series A, my wife has been asked to leave her current job and she can no longer support the family. And, due to the nature of her job, it’s very challenging for her to find similar job with same pay. Plus, I don’t think it’s fair for me to ask my wife to continue to support the family. I have started to look for full time jobs to support the family. In others words, I may have to close the company.
This gets complicated, as I am still a major shareholder of the company, my investor and my cofounder still want me to continue to run the company. However, I need to get a certain minimum amount to support the family, which is difficult to justify to the board, and our future investors.
What are my options here?
- Can I technically sell my share to my current VC and cofounder (based on discounted market value), quit, and look for a full-time job?
- Get someone to acquire the company at a very very low value? But, the VC has the preferred share, in the end, my cofounder and I might end up with nothing (after three years of hard work). And, at the same time, the VC and my cofounder really want to see the business keep going.