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Dicey Exit
I co-founded and bootstrapped a B2B SaaS product as CTO/CPO with my first-time founder CEO brother-in-law almost 3 years ago. I’ve been doing SaaS startups for years and have seen many things. This one is a mind bender. My BIL and I’s relationship has rapidly deteriorated over the last year as I’ve built the product to be self-service, low-maintenance and low-cost to run. I believe he now sees me as dispensable and hence wants to get me out of the company. I own 50% shares outright of the company and there are no repurchase terms. My BIL has been gaslighting me on small things and the drama and magnitude of deception has grown to the point where I decided to resign from my operational role. He’s muddied the family relationships and has attempted to blackmail me to sign a mysterious offer to buyback my shares at peanut value. I still have read-only access to the books and I’ve seen the sales projections for year-end are off the charts. He’s kicked me out of all other company comms which I understand makes rational sense if I no longer work there, but he’s behaving very erratically. Going off current ARR multiples, looks like the current valuation would be around $5m. Given I never took out a salary, and BIL cannot be trusted (he owns other 50%, we are fully bootstrapped no outside capital raised), what do I do to liquidate my shares ? I want out even if it means taking a discount and covering closing costs. It’s an EU climate health company and I believe it would make most sense to offer my position to a PE firm with existing EU portfolio companies. I’ve started to look into options for listing on online marketplaces to find a buyer to fully buy me out, but I have never done this part of the startup journey of selling under duress. Currently looking for a job in an insane job market as an IC, got the young kids, my wife and I on Medicaid but still need to figure out income to survive while I resolve the startup exit. Any insights from those who may have walked this path would be appreciated, I’m desperately all ears as the financial strain and family isolation dynamics are not long-term positions i can withstand.5
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