Collapse the company you currently have - take your losses and share out whatever proceeds you can with that dud-millionaire partner from the remaining assets. (It doesn't seem he's that interested, so he may not put up that much of a fight.)
Set up another company with this other guy - MAKE SURE YOU HAVE A LEGITIMATE CONTRACT THIS TIME!!! - and effectively become your own competitor.
I'm not sure what your soon to be ex-partner's motivation is here. You probably started this partnership with bubbling enthusiasm, drive and the very best of intentions - what changed that? You will really need to consider this - and define for yourself where the power shifted in his favour.
He's acting irrationally by throttling your company over a sum that must seem like chicken-feed to him. my suggestion It's possible that by throttling your startup, he's somehow making money in the background by some external-mechanism, hence my suggestion that you crash the company, and cut your losses.
The longer you wait, the more likely it is that your evasive partner is enacting a scheme to cut you out of the scene, while maximising his own profit potential.
Is it all verbal or is there written emails?
If it's all verbal, take $15K from the guy with the $200K and pay the first dude back (include some interest payment too).
Then go on your merry way with guy number 2.
If it's in email... you will have to sort through this mess you created.
He has NO obligations. There is no contract. He is stalling because he is not really interested.
Consider the second person, but do nothing until you have a legal contract drawn up by a lawyer.
The ship that won't sail: a partnership.
I built an awesome and unique e-commerce site that we project will make lots of money due to the unique nature of the services it will offer.
The problem is that I brought in the wrong business partner, he paid for the development and was to pay for marketing and launching it but he's been staling for months and I am at my wits end. He was supposed to set aside 50k for launch and he has the money, he's a millionaire.
I know have another person who is interested in investing 200k to get it going, as that what he feels is necessary to really get it going.
Only agreement I have with partner is verbal at this point, and he's not returning calls, texts or emails, when he does all he says is lets meet but never confirms time or place.
How do I get rid of him since he is not meeting his obligations to the startup nor putting up the funds he said he would? is he in breach? and can I just start with the new partner.
The money partner has had 0 input into ideas or development, he just put up 15k for development of the site and it still needs revisions and content development before launch.
