You're exactly right. They paid the third founder $700,000 to go away after their Series A. Smart, but I actually didn't respect him leaving his friends out to dry and forcing them into awkward conversations with their investors. I guess that lesson is make sure your founding team is committed before you dole out the stock certificates :).
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And ironically the only one who actually made money out of this whole deal was the guy who jumped out of the ship at the early beginning...
You're exactly right. They paid the third founder $700,000 to go away after their Series A. Smart, but I actually didn't respect him leaving his friends out to dry and forcing them into awkward conversations with their investors. I guess that lesson is make sure your founding team is committed before you dole out the stock certificates :).