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How do you have a situation where you make a funding deal, the guys only come through with half, and they still get their equity share?
by DannoHung 18y ago
How do you have a situation where you make a funding deal, the guys only come through with half, and they still get their equity share?
- pclark 18y agodesperation
- ams6110 18y agoI've personally seen it happen twice. A company that has a reasonably well developed product is short on cash. Some "white knight" appears with a big investment, but the deal drags out, the company is forced into bankruptcy, and the so-called savior acquires it for a fraction of the original investment amount. Seeing this same scenario here makes me think it must be a common predatory tactic. Lesson is, if you've got a good product but are short on cash, be very wary of big investors.