3 ms·
>how do you prevent this? Don't sell your company.
by grepfru_it 4y ago
>how do you prevent this?
Don't sell your company.
- doctor_eval 4y agoYeah, well that’s easy to say now…
- grepfru_it 4y agoNo, not really. You learn this during your first round of fund raising. Once you give up controlling equity, the company is no longer yours. It’s easy to forget that it requires money to grow your company. If it’s not your money, it’s not your company…
- doctor_eval 4y agoWell, selling a business includes the parties signing a number of written contracts and agreements which, in theory, should persist beyond completion. So it’s really not as simple as you say, and certainly not just a simple case of looking at the cap table.
- grepfru_it 4y agoWhen someone is handing you gobs of money they will very likely strike out terms which limit their control. It’s like why you wouldn’t accept a car loan with an early payment penalty unless the terms were excessively good for you You have a board of directors, you are at their mercy.. not the other way around.