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I know a number of places where the acquisition price was enough to perfectly cover whatever amount was needed to cover a majority of VCs on the board. I.e., f
by danielweber 12y ago
I know a number of places where the acquisition price was enough to perfectly cover whatever amount was needed to cover a majority of VCs on the board.
I.e., five people on a board, from VC group 1, VC group 2, VC group 3, the founder, and someone else. The VCs invested $44,140,000 into the company and get that at a minimum from any acquisition. Then the company gets acquired for $44,140,000.
I'm 99% sure this violates the fiduciary responsibilities a board of directors has, but, who the hell is going to sue?
- opendais 12y agoThe minority VC that gets left out in the cold? ;)