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Minority investors have zero control over you. People think they have to play the VC's game and they simply do not.
by pbreit 8y ago
Minority investors have zero control over you. People think they have to play the VC's game and they simply do not.
- dgudkov 8y agoThe level of control depends on the term sheet. As far as I understand, there is always a degree of control/preference, even when VC's share is minor. I haven't heard of term sheets that would give total carte blanche to the founder.
- avinium 8y agoAs with everything, the devil's in the details. If your funding arrangement allows a minority investor to veto future fundraising, subordinate liquidation preferences, etc etc, they can kill your company. Of course, most deals aren't on such onerous terms - but they do happen.