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I can see pivots being worthwhile for existing investors if the business needs more investment. If the pre-pivot is a worthless thing you own 7% of, it would b
by Lerc 3y ago
I can see pivots being worthwhile for existing investors if the business needs more investment. If the pre-pivot is a worthless thing you own 7% of, it would be better to inject another bundle to own 14% for a new thing instead of starting afresh and owning 7% of nothing plus 7% of a new thing.
- pclmulqdq 3y agoThe thing is that usually pivots are pre-vesting for the founders, and usually the company has less in the bank when they initially raised. In those conditions, the entirety of the company's assets will be returned to the investors when the company dissolves. It is a good point that it can get you a larger share of a success, though.