The startup I'm working on had an interesting start and we have 7 'founders' involved. Only 5 are really contributing anything to the project even though the others somehow seem to feel that they are entitled to a share in the profits. At this point it's not much of a problem but when we get funding I'd like to make them an offer to leave and give up their rights to the company. I'm thinking of offering 1% of the profit from any company sale or an option on 1% of the publicly available shares if we go public. (That's for each of them so basicaly give away 2%) Do you think this is a good move? Has anyone dealt with something like this before?
do it now. when the money is on the table they will get greedy and this may potentially keep you from funding. ie legal issues.