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VCs can force a company into selling. That's true, and that is one of the misaligned incentives that comes from VC funding. It also only happens if you don't ma
by timr 8y ago
VCs can force a company into selling. That's true, and that is one of the misaligned incentives that comes from VC funding. It also only happens if you don't maintain board control. It's not as if young, slow-growth companies are being abducted by evil VCs handing out cash from an unmarked van. You know what you're getting into when you sign the contract.
It's also not the scenario of a "zombie startup". If you're a zombie, nobody wants to buy you. If investors can line up an acquihire in that scenario, it again falls under the category of "mercy", not "evil".
The case of the happy, naïve, slow-growth company who is forced to sell out by evil investors is more theoretical than real. The people who complain about that outcome are shooting for the moon, not for a lifestyle business.