StabilityAI cofounder says CEO tricked him into selling stake for $100
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Re: StabilityAI cofounder says CEO tricked him into selling stake for $100
#2https://archive.is/Sl3XS
(Also, I didn’t research this author, but a reminder that for $500 or so, you too can become a writer for Forbes. They have a massive credibility issue and I suspect are cashing out what little name they have left)
Re: StabilityAI cofounder says CEO tricked him into selling stake for $100
#3So many people don’t do the right thing.
Re: StabilityAI cofounder says CEO tricked him into selling stake for $100
#4Maybe he used one of those super-persuasive AIs I keep hearing about.
Re: StabilityAI cofounder says CEO tricked him into selling stake for $100
#5VCs don't like dead equity, they will have pressed for this. Nonetheless you cannot lie and this could have been resolved with integrity.
Re: StabilityAI cofounder says CEO tricked him into selling stake for $100
#6Odd story. The point at which you're selling your stake for $100, you've basically decided to give it away. Which raises the question: if he was just going to get $100 and nothing more, why not just hang on to it?
Re: StabilityAI cofounder says CEO tricked him into selling stake for $100
#7I was chatting with a company who sold a large minority stake in their company to a well known private equity group (think 49%) with the explicit purpose of retaining control.
Soon after the transaction closed, the PE firm was able to covertly buy another 2% of voting shares from a pre-existing investor in the company, which resulted in the PE firm gaining full majority control over the company, kicked out the CEO, replaced the board of directors, the whole works.
The unfortunate part about these kinds of things is that 1) they happen all the time, and 2) founders rarely talk about it because doing so can so often destroy your ability to get funding for future endevors, etc.
I really wish there were an anonymous but vetted "yelp" type of site for people/firms who do bad business. So much business is done in bad faith and the people on the losing end rarely have the ability to warn others of their experience without killing their own reputation.
Re: StabilityAI cofounder says CEO tricked him into selling stake for $100
#8I was chatting with a company who sold a large minority stake in their company to a well known private equity group (think 49%) with the explicit purpose of retaining control. Soon after the transaction closed, the PE firm was able to covertly buy another 2% of voting shares from a pre-existing investor in the company, which resulted in the PE firm gaining full majority control over the company, kicked out the CEO, r…
They call it "swimming with the sharks" for a reason.
Re: StabilityAI cofounder says CEO tricked him into selling stake for $100
#9Odd story. The point at which you're selling your stake for $100, you've basically decided to give it away. Which raises the question: if he was just going to get $100 and nothing more, why not just hang on to it?
And it was in a few transactions? That’s even more odd like the CEO couldn’t afford $100 in a lump sum.
Re: StabilityAI cofounder says CEO tricked him into selling stake for $100
#10May I just say, that the most ridiculous thing in this news really is selling a 15% stake in a company for $100?
I'm no way rich, but I would not even bother taking the time to go to a lawyer or whatever and do all this kind of paperwork for such a ridiculous amount of money, I'd just ride it however it goes and not care.