I was a co-founder of the startup, and still hold about 9% of the equity. My co-founder fired me some time ago, and I have not received any communication from them ever since. I found out from a random PR release that the startup was acquired earlier this month by a PE firm. I have yet to receive any sort of communication from the startup about the acquisition, much less the details of the acquisition. It's a small startup - ~10 employees, incorporated in Delaware, and a few million in VC funding. We use Carta, and I see my shares on Carta, but I don't see anything about the acquisition there either.
I have no idea what to expect to be honest. I am cautiously hopeful that my equity will be worth mid-six-figures, potentially even a million. But I wouldn't be shocked if the acquisition was for less than liquidation preference, and I don't receive anything at all. Given the relatively low stakes, I'm hesitant to spend a bunch of money on lawyers.
I'm trying to figure out:
1. Is the company required to reach out to me, and send me whatever money I am owed for my shares?
2. Is the company required to send me details about the acquisition?
3. I've heard some horror stories about ex-founders getting screwed over. The most famous being Zuckerberg diluting Saverin's stake in FB, and Saverin needing to file a lawsuit to get the money he was owed. What can I do to protect myself and figure out if the company is violating its fiduciary duties to me as a minority shareholder?
4. Besides the above, is there anything else I should be doing?
I have no idea what to expect to be honest. I am cautiously hopeful that my equity will be worth mid-six-figures, potentially even a million. But I wouldn't be shocked if the acquisition was for less than liquidation preference, and I don't receive anything at all. Given the relatively low stakes, I'm hesitant to spend a bunch of money on lawyers.
I'm trying to figure out:
1. Is the company required to reach out to me, and send me whatever money I am owed for my shares?
2. Is the company required to send me details about the acquisition?
3. I've heard some horror stories about ex-founders getting screwed over. The most famous being Zuckerberg diluting Saverin's stake in FB, and Saverin needing to file a lawsuit to get the money he was owed. What can I do to protect myself and figure out if the company is violating its fiduciary duties to me as a minority shareholder?
4. Besides the above, is there anything else I should be doing?