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I understand that, particularly in a down round, investors can push to get more. What I don't understand is what allows founders to get a side deal. It seems li

I understand that, particularly in a down round, investors can push to get more. What I don't understand is what allows founders to get a side deal. It seems like that would go against fiduciary duty to common shareholders and earlier rounds.

propter_hoc 1y ago
It's because the investors still need the founders to run the business, usually.
- RainyDayTmrw 1y ago
  More bluntly, why wouldn't/can't the other common shareholders sue?
  - vkou 1y ago
    Because then they'd be left with their original stake, but in a worthless, bankrupt company.
    - kadoban 1y ago
      Sounds like leverage to me.
      - vkou 1y ago
        They are always free to give the worthless, bankrupt company they own more money, and thus avoid dilution.