100% the investors are sophisticated + informed enough to understand the risks of convertible notes. There are similar risks for a founder when accepting conver

100% the investors are sophisticated + informed enough to understand the risks of convertible notes. There are similar risks for a founder when accepting convertible notes. I'd guess the investors could all call the debt in at this point (like one already did) but they have no incentive to do so since they'd rather hold out for a conversion event which could still happen. The risk to a founder is having the debt called and not being able to pay it back and/or having the valuation of the company not where you'd predicted - depending on the terms a founder could actually lose their company in this case. NAL. Really it just seems _too bad_ for the employees and cofounder that feel like they're getting screwed. It isn't like "get it in writing" is a new concept though. I'd guess they either drank the Koolaid early on or they had a gut feeling they were getting screwed for years before this all came out. Either way, a shitty place to be in but not new or uncommon with cut-throat founder/investor types. They should go found companies themselves! Get a big ol' piece of the pie!