[rexreed]

Take it from me, a negotiated buy-out is the way to go. I had to buy out a former partner and negotiated a payment over 12 months. It worked out for everyone.

Current valuation should be valuation at the time of the investment multiplied by a small growth factor (1.5x perhaps).

Your stake is the amount you would have owned as of the first cliff (and not any sooner), which is 10% after the investment round.

if the company was valued at $1M at investment, then it would be worth maybe $1.5M at time of the 1yr cliff given the growth factor.

Your 10% of that is $150,000. The company should pay you $12,500 per month for 12 months to fully buy you out. And the company should time the payments to reduction in your equity. If they speed up payments, it speeds up the buy out. If they slow it down, it slows down the buy out.

You should also renegotiate any non-compete.