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At the very bottom, in a post-script: > The constant comparison and growth benchmarking triggered us to look differently at our business and we decided to wind
by jawns 4y ago
At the very bottom, in a post-script:
> The constant comparison and growth benchmarking triggered us to look differently at our business and we decided to wind up its operation right after the Demo Day.
What happens in this scenario? YC gave them $500K in exchange for 7% of the business, and then they immediately shuttered the business?
Did they get to keep the $500K?
- iamnafets 4y agoAbsolutely not. SAFE investments have liquidation preferences - the investors will get what's the left of the money back.
- acecreamu 4y agoWe didn't take 375k in fact. In W22 batch they were optional, and would trigger MFN for many. As for the rest of money, we returned what has been left. That's why closing so rapidly - to be able to return more.
- satvikpendem 4y agoWhy not take the 375k and/or pivot?
- acecreamu 4y agoThe dilution at that point would be unbearable
- satvikpendem 4y agoI saw your other comment, makes sense. Are you working on a new startup then?
- acecreamu 4y agoYes sir, slise.xyz - new market, new team, much larger and more painful problem to tackle. Lessons learned.