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> You want to be in a position where if your investors ask you for something you can just ignore them. What reasonable investor would put themselves in that po
by mfatica 7y ago
> You want to be in a position where if your investors ask you for something you can just ignore them.
What reasonable investor would put themselves in that position? They're just going to give their money away and not have any say in what happens?
- nostrademons 7y agoOnes who expect that the company in question is going to do well regardless of what they do and trust management to make good decisions on their behalf. This is the same position that every retail investor, every LP of a venture or hedge fund, every shareholder of a company where the founder controls a majority of voting stock, and every person with a pension or 401(k) puts themselves into. You could argue about whether that's a stupid thing to do, but it's the vast majority of shareholders within the world, so stupid or not, lots of people do take that bargain.
- omginternets 7y agoThis is quite standard in my (limited) experience. We're raising a seed round and I've spoken to nearly 100 VC firms. The most any have asked for is an observer seat.
- cududa 7y agoI mean yes that’s pretty much how 90% of deals in the valley happen?