First of all, you're not an ex-founder. You're a founder. You happen to have moved on to another project.
Second, you're a shareholder of the company. You're a big enough shareholder that they'll ask for your signature on the paperwork when they recapitalize ("raise money").
Third, any variant of "you suck. I don't want anything to do with you." is a poor opening gambit in a negotiation strategy, even it's true.
If I were you I'd ask to sell some, but not all, of your shares into this financing round. You can simply say you need some liquidity. This isn't a bizarre request. They may turn you down, but they won't think the less of you for asking.
If they're raising money on a $40 mill pre-money valuation, that pegs your 5% stake's paper value at 2 megabucks. Selling a quarter of your stake into the round will get you $400K even if you give them a stiff discount. That's more than the $100K. And, you still have some upside if you're wrong about their prospects.
That being said, you're probably right about their prospects. Been there. Done that. Didn't even get a Tshirt.
Second, you're a shareholder of the company. You're a big enough shareholder that they'll ask for your signature on the paperwork when they recapitalize ("raise money").
Third, any variant of "you suck. I don't want anything to do with you." is a poor opening gambit in a negotiation strategy, even it's true.
If I were you I'd ask to sell some, but not all, of your shares into this financing round. You can simply say you need some liquidity. This isn't a bizarre request. They may turn you down, but they won't think the less of you for asking.
If they're raising money on a $40 mill pre-money valuation, that pegs your 5% stake's paper value at 2 megabucks. Selling a quarter of your stake into the round will get you $400K even if you give them a stiff discount. That's more than the $100K. And, you still have some upside if you're wrong about their prospects.
That being said, you're probably right about their prospects. Been there. Done that. Didn't even get a Tshirt.