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I really want to hear the other side of the story here. There's so much unfocused resentment in this article that I think something else is going on. (specifi
by powera 10y ago
I really want to hear the other side of the story here. There's so much unfocused resentment in this article that I think something else is going on. (specifically, the asides about how the Venture firm flies private jets and hates minorities).
The whole point of venture debt is that if there is a bankruptcy, they get the whole company. Whether there was tortuous interference (I think that's the right term) or simply weren't willing to lose more money on this company, I don't know.
My basic take on the article is really just "man's company fails, he blames the last person to put in money".
- mst 10y agoI'm not sure that interpretation flies if the company never missed a payment.
- powera 10y agoNot missing a payment because the CEO is taking on personal debt to invest in the company is not really sustainable, and almost certainly a red flag to investors. Based on the other article I link to, they seem to have been behind on their payments to everyone else as well. And were doing "deep discounts" to keep cash flow high. Clearly a bubble situation in my mind.
- JackFr 10y agoWell, never missed a payment until the bankruptcy filing, at which point Comvest can line up at the courthouse with everyone else.