4 ms·

That makes no sense to me. They could give the company to the employees instead right? Unless they wanted the code or something.

nine_k 2y ago
If the company was seen as a competitors to Yahoo, it looked reasonable to shut it down. The VCs invested in several companies that had a promising direction, then shut down all but one that was growing fastest and grew biggest.
- rented_mule 2y ago
  We weren't in competition with Yahoo in the marketplace. But we were competing for the VCs' focus, and that's still competition.
  - EGreg 2y ago
    But I dont see how they can force the founders to shut down the company They maybe gave them a big carrot u didnt know about
    - rented_mule 2y ago
      I am close friends with one of the founders. That friendship predates the company by several years. He did get a payout - I was with him when he pulled it out of his mailbox. A check for 32¢ for all the stock he had. I don't know the details, but I believe they did it via a redemption rights clause in the investment agreement. https://venturecapitalcareers.com/blog/redemption-rights https://venturecapitalcareers.com/blog/redemption-rights
actionfromafar 2y ago
Strangely, transferring a company can be more complicated if you care about liabilities, contracts, assets, non-tangible and otherwise. That flavour of VCs don’t have time nor care. Maybe they had several more companies to close that day.
rented_mule 2y ago
They sold off the assets... the most valuable asset was our data. I don't know what they were paid for the data, but I'd guess a couple of million dollars given what I know they spent to migrate it to the buyer.
refurb 2y ago
Unless the founders own 100% of the company (which they don’t if they raised money), no, they can’t give it to employees.
- langcss 2y ago
  To be clear I mean the investors! However it sounds from another comment like the investor instead got some money from it they didn't just drop it like a ball.

nine_k 2y ago

If the company was seen as a competitors to Yahoo, it looked reasonable to shut it down. The VCs invested in several companies that had a promising direction, then shut down all but one that was growing fastest and grew biggest.

rented_mule 2y ago
We weren't in competition with Yahoo in the marketplace. But we were competing for the VCs' focus, and that's still competition.
- EGreg 2y ago
  But I dont see how they can force the founders to shut down the company They maybe gave them a big carrot u didnt know about
  - rented_mule 2y ago
    I am close friends with one of the founders. That friendship predates the company by several years. He did get a payout - I was with him when he pulled it out of his mailbox. A check for 32¢ for all the stock he had. I don't know the details, but I believe they did it via a redemption rights clause in the investment agreement. https://venturecapitalcareers.com/blog/redemption-rights https://venturecapitalcareers.com/blog/redemption-rights

actionfromafar 2y ago

Strangely, transferring a company can be more complicated if you care about liabilities, contracts, assets, non-tangible and otherwise. That flavour of VCs don’t have time nor care. Maybe they had several more companies to close that day.

rented_mule 2y ago

They sold off the assets... the most valuable asset was our data. I don't know what they were paid for the data, but I'd guess a couple of million dollars given what I know they spent to migrate it to the buyer.

refurb 2y ago

Unless the founders own 100% of the company (which they don’t if they raised money), no, they can’t give it to employees.

langcss 2y ago
To be clear I mean the investors! However it sounds from another comment like the investor instead got some money from it they didn't just drop it like a ball.