4 ms·

What if its a company with over 4 years, some sucesses but now into bankrupcy?

by mobl 16y ago

staunch 16y ago
Once the company is considered a loss they want to get as much of their money back as quickly as possible. What else would you expect from them?
- mobl 16y ago
  What if a product that costed us to develop was over $100,000, and I am getting an offer to buy it for $1,000? And we have many products like this example (close to 20) Is it normal they will literally force you to sell it for pennies on the dollar? I understand that it was their money, how would you handle it? Just sell it and move over to the next thing?
  - staunch 16y ago
    It doesn't matter how much you spent to develop it. All that matters is how much it's worth. So if the highest offer you can get is $1,000, then offer to buy it for more ($1500). If you can't afford to buy the assets yourself maybe you can find a new investor to buy the assets on your behalf. Otherwise: yes, you should just move on.
    - tptacek 16y ago
      What staunch said. If you can't afford $1500 to buy your code back, you're not serious enough to be arguing with your VC's anyways. I'm embarrased that I wrote 100 words up there and didn't just say this myself.
    - jerf 16y ago
      Or heck, offer to buy it for a little less, since I imagine selling it to a member of the company would be less complicated and you can extract that in the price. (Though perhaps I'm wrong and it's easier to sell out of the company?)
  - tptacek 16y ago
    What's there to handle? You owe a fiduciary duty to your shareholders to notify them of the offer. If you're in a tailspin, presumably the VC is going to control the board decision, and you can safely expect them to act in their own interests. $1000 is irrelevant to the VC, but if you're being forced to entertain $1000 offers for $100k investments, your BATNA isn't great, everyone knows it, nobody's ever going to give you a good deal, and the VCs are pretty much paid to understand that.
  - adrianscott 16y ago
    look up 'fiduciary duty' if it's a vc it's not their money (99%) and they have a fiduciary duty to their investors to get as much of their investment back as possible. that's why... you could always offer $1,001 of your own money to buy it personally, etc.

What if its a company with over 4 years, some sucesses but now into bankrupcy?

by mobl 16y ago

What if its a company with over 4 years, some sucesses but now into bankrupcy?

Once the company is considered a loss they want to get as much of their money back as quickly as possible. What else would you expect from them?

mobl 16y ago
What if a product that costed us to develop was over $100,000, and I am getting an offer to buy it for $1,000? And we have many products like this example (close to 20) Is it normal they will literally force you to sell it for pennies on the dollar? I understand that it was their money, how would you handle it? Just sell it and move over to the next thing?
- staunch 16y ago
  It doesn't matter how much you spent to develop it. All that matters is how much it's worth. So if the highest offer you can get is $1,000, then offer to buy it for more ($1500). If you can't afford to buy the assets yourself maybe you can find a new investor to buy the assets on your behalf. Otherwise: yes, you should just move on.
  - tptacek 16y ago
    What staunch said. If you can't afford $1500 to buy your code back, you're not serious enough to be arguing with your VC's anyways. I'm embarrased that I wrote 100 words up there and didn't just say this myself.
  - jerf 16y ago
    Or heck, offer to buy it for a little less, since I imagine selling it to a member of the company would be less complicated and you can extract that in the price. (Though perhaps I'm wrong and it's easier to sell out of the company?)
- tptacek 16y ago
  What's there to handle? You owe a fiduciary duty to your shareholders to notify them of the offer. If you're in a tailspin, presumably the VC is going to control the board decision, and you can safely expect them to act in their own interests. $1000 is irrelevant to the VC, but if you're being forced to entertain $1000 offers for $100k investments, your BATNA isn't great, everyone knows it, nobody's ever going to give you a good deal, and the VCs are pretty much paid to understand that.
- adrianscott 16y ago
  look up 'fiduciary duty' if it's a vc it's not their money (99%) and they have a fiduciary duty to their investors to get as much of their investment back as possible. that's why... you could always offer $1,001 of your own money to buy it personally, etc.