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That assumes that the company proceeds through successive rounds with an upwards trajectory. If the company falters and takes a down round the initial investor
by lumost 9y ago
That assumes that the company proceeds through successive rounds with an upwards trajectory. If the company falters and takes a down round the initial investors may disagree with the direction or even sue.
If the company needs to be recapitalized or restructured under a time crunch, tracking down 100 loosely involved investors and getting them to sign the deal may not be feasible.
- sharemywin 9y agoProbably would have been better to have arbitration instead of lawsuits written into the law. (to make it work not for investors)