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I participated in an accelerator run by a large corporate VC. They were supposed to give part of the cash up front (for common stock) and part after (in exchang
by throw17121 9y ago
I participated in an accelerator run by a large corporate VC. They were supposed to give part of the cash up front (for common stock) and part after (in exchange for a note). During the initial negotiation, they offered to let me take it all up front for common stock. Because we had plenty of cash on hand, and because I wanted to use the post-program note to kick start a funding round, I said I'd just do the regular deal.
When I asked them about the note after the program ended, they said they thought I didn't want all the cash and so they wouldn't give it to me. Years later, and I've only just now gotten them to give the promised funding. I was shocked that they would behave this way considering the damage it can do to their reputation if word got out.
- rhizome 9y agoAnd yet...word doesn't get out.
- throw17121 9y agoI decided not to publicize it without giving them several chances to fix things. They did eventually fix it, and for reasons I won't disclose (because disclosing would make identification much easier), publicizing what happened to me would no longer be terribly helpful.
- neotek 9y ago>publicizing what happened to me would no longer be terribly helpful. To you maybe; what about everyone else?
- throw17121 9y agoThe unhelpfulness isn't related to my getting the funding. It's about changes at the VC
- wellboy 9y agoWhy not write an anonymous post, better for others to know.
- throw17121 9y agoDefinitely thought about it at several points. We aren't technically covered by a nondisclosure agreement, but at this time I'm not writing it up. Many people (from my cohort and beyond) are aware of what happened, so if people reach out to them when they are doing diligence on the VC, they may find out that way.
- philipodonnell 9y agoEveryone in your cohort may also assume that you will be the one to tell those doing due diligence because you aren't covered by an NDA and it happened to you?
- throw17121 9y agoAs I mentioned in a sister thread, the issue is largely moot because of changes at the VC.