> When the FanDuel founders raised funds, two key investors received a liquidation preference that entitled them to the first $559M in an acquisition. Founders

> When the FanDuel founders raised funds, two key investors received a liquidation preference that entitled them to the first $559M in an acquisition. Founders and employees would be paid only if the acquisition exceeded $559M. > The reality was the founders couldn’t stop the deal because they also granted the same two lead investors drag along rights. This drag along right forced the other shareholders to accept the decisions made by these two investors. So they signed a funding contract that gave two investors the right to take all the money in a certain situation and force the company to go along with it. That seems pretty insane. I think the lesson is the same as any other contract. Know what you're signing, and beware. I thought this story was going to be about some people getting screwed over somehow. This is a story about people agreeing to something that they should not have agreed to, and had to suffer the consequences.