3 ms·
Such "zombie" companies are effectively a write-off for venture investors given the power law dynamic of their funds. Usually the SAFEs will be negotiated away
by beambot 4y ago
Such "zombie" companies are effectively a write-off for venture investors given the power law dynamic of their funds. Usually the SAFEs will be negotiated away (modest payout or written down to zero) as the 10-12 year lifetime of the fund draws to a close.
Most parties are good about coming to an amicable conclusion since a bitter dispute would irreparably harm both parties' reputation in future endeavors.
- Terretta 4y agoirreparably is overused on the contrary, almost nobody remembers anything where they weren't a main character
- thesausageking 4y agoI'm not talking about zombies. These are profitable, growing companies. Just not venture scale. Often you can work something out with founders, but the fact that the SAFE doesn't have anything to say about these situations is a bug.