micecof

but what if I want to expose / mount more files in the sandbox?

need docs

Our intention is not to recover the 13 weeks of pay, but we would rather let them keep it, and remove them from the company being that's the "pay out" they get for their shares.

Although, we are trying to understand if this could be considered as fraud so we can remove them with a legally solid reason, and confiscate their shares.

The majority of our pre-seed funding comes from a US-based VC firm with an uncapped SAFE. And our investors haven't been made aware of the situation yet, but we are thinking about informing them on Wednesday this week.

Thank you very much for the suggestion, we have also thought about starting a new entity, but we are not so sure on how to transfer our assets (SAFE note, domain, IP, employees, customers, code bases, etc) to the new entity, and how this would affect the relationship with our existing funders.

What do you think the pros and cons would be?

Sorry for the confusion - they have advanced their payroll for a total amount of 13 weeks (accumulated through multiple pay stubs), while they have requested still getting paid weekly like the rest of us. So their behavior seems like they are trying to max out the values before they check out.

Their advances will probably last us another 2 weeks, and we only have 8 weeks of runway left because we are at the end of our pre-seed incubation program, and we are about to raise our seed round with our lead investor in a few weeks.

I can't agree more that this will eat up our time and resources very fast, but we also want them out before we pitch to our lead investor for the seed round. We have already spent a week investigating this issue ever since we noticed something wrong, so we have a very narrow time window for us to take actions, ideally by early next week.