5 ms·
But firing the CEO, even a founder, is the right of investors who paid for it... I mean what else do you sell them? If they like the business but not the guy,
by secondaryacct 5y ago
But firing the CEO, even a founder, is the right of investors who paid for it... I mean what else do you sell them?
If they like the business but not the guy, why should they forever be forced to have him as a parasite in their mind ?
Dilution seems wrong though, because they were supposed to buy something, not steal it.
- ajkjk 5y agoYou sell them.. returns on their money. That's the whole point, right?
- freejazz 5y agoThen don't sell voting stock?
- jacquesm 5y agoThen you won't be raising any money. It isn't unusual to see VCs insist they get more rather than fewer rights and preferential treatment options because they are later to the party and get to dictate their terms or they walk. That's why you in theory should always negotiate from strength, the weaker your position the bigger the chance that you will have to accept unfavorable terms.
- asdfasgasdgasdg 5y agoUnless your company is a rocket ship already off the launch pad and accelerating to orbit, it's hard to make a deal that doesn't involve voting stock.
- wly_cdgr 5y agoYou sell them the opportunity to gamble a large amount of their money with better odds and/or a more appealing returns distribution than any casino will give them, and for barely any more effort on their part. If anything, it's really very presumptuous of them to ask for any measure of say over the outcome beyond a good faith promise from the founder to try their best