The best option for me is that both you and michael give up 1.5% to Austin(total 3%). And, tell him that both of you already lose 1.5% and he only losts 1% since he initially demands 4%(4-3=1). I think he will be satisfied with this option.

Anyway, I am more interested in knowing how this startup goes on with two business guys and one developer. Could you please update us more with this dummy account again? Thank you.