The founder had the guts to tell the investors that there’s a deal on the table, but he’s not going to do it unless the VCs walk away from the investment. It w

The founder had the guts to tell the investors that there’s a deal on the table, but he’s not going to do it unless the VCs walk away from the investment. It wasn’t a growth story, so from that point of view it was dead money for the VCs anyway. But why would they agree to the founder’s payout at their expense? Either the VCs are very impressed with this founder and plan to participate in his next company, or they’re fed up and just wanted to be rid of him.