3 ms·

I don't understand how they lost their startup though? Doesn't the accelerator only take a small percent?

• atherton33 2y ago
  "Startups also granted Newchip the right to buy $250,000 worth of shares in the company at a later date, but at their current valuation"
  • jojobas 2y ago
    So the company was essentially signed away even before the bankruptcy.
    • atherton33 2y ago
      Yup. The bankruptcy just transferred the right to exploit it from the mildly incompetent to expertly ruthless.
      • behringer 2y ago
        I prefer the term scam artist over "expertly ruthless"
        • morgante 2y ago
          I don't think the final buyers are scam artists. They're mercenary, but not deceiving anyone. The scam artists are definitely the people preying on entrepreneurs' dreams to sell a worthless accelerator membership.
    • irjustin 2y ago
      Yeah this is a pretty bad and far far far from founder friendly.
  • deleted 2y ago
    [deleted]
• pnw 2y ago
  I guess the argument is that a $250k warrant sitting in bankruptcy court is a potential liability that would turn off other investors. It's not something I've personally seen, but it doesn't really seem insurmountable for a hot startup. Losing a cofounder is a much more common and potentially painful problem. The CEO's post on LinkedIn made it seem like they found it tough to get funding in general.
  • deleted 2y ago
    [deleted]