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If vc doesn’t get preferred shares, someone can just turn around and immediately sell the company for $400k and keep 90% of the money so that would seem like a
by dilyevsky 3y ago
If vc doesn’t get preferred shares, someone can just turn around and immediately sell the company for $400k and keep 90% of the money so that would seem like a silly thing to complain about
- robocat 3y agoDon't be "silly": that is just the standard bullshit argument. It is a poor argument because it is entirely possible to come up with terms that could be written into the contracts to prevent that obvious scenario. I wouldn't be surprised if tag-along or preferential rights or other clauses don't already prevent that scenario. Anybody know? Founders often invest $100000's of their time - yet they are not given equivalent value in preferential shares. The game is rigged!