2 ms·
Two things come to mind. 1. At the end of the day, investors are people too. They may care that the team ends up whole. 2. 800k is non-trivial money, but it’s
by kenrose 6y ago
Two things come to mind.
1. At the end of the day, investors are people too. They may care that the team ends up whole.
2. 800k is non-trivial money, but it’s a small percentage of, say, a $100MM VC seed fund. The economics of VC are that some investments will net zero return. While they could have tried to claim back something here, letting go with grace gives them a lot of goodwill to be first to invest in the founder’s next project (assuming there is one).
- deleted 6y ago[deleted]
- mooreds 6y ago> letting go with grace gives them a lot of goodwill to be first to invest in the founder’s next project Also a halo effect with other people who are reading this. But I'm guessing there were some animated discussions about this. Plus, per https://news.ycombinator.com/item?id=25045874 https://news.ycombinator.com/item?id=25045874 > We've had carryover losses for years, so from a tax perspective, there was no hit on either side.