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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, t
by 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 agoWe weren't in competition with Yahoo in the marketplace. But we were competing for the VCs' focus, and that's still competition.
- EGreg 2y agoBut 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 agoI 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