91–100 of 167 posts
Earlier quoted context omitted.
> They make an investment in your company on terms they can claw back the money at any time It is a loan then, not an investment.
Even worse - loans can't usually be clawed back at any time
>"It was very sad to call it quits because getting the funding to make those units was the only hurdle before making serious progress,” Temple said. “If they connected me with investors like they said, I could have made my invention, gotten efficacy and would be shipping units right now. I really do believe that." It's unfortunate to see a founder believe that one accelerator would make or break their company. Typica…
So the question to the experts here is, what should someone look out for as a potential founder or employee (early or late)? I've so far seen 0 upside from the three startups I have worked at and I am not likely to think of options as an incentive in the future. Is this the new norm? Are the days of equity as compensation dead (even for founders)?
As a founder, you’re in control. Your equity is worth as much as you make it! But the more funding you need to take on, the more diluted you’ll be. Bootstrappers grow slower but remain in complete control, and can’t be screwed by rare events like this one (or more common dilutive events, which VCs may force on you).
I probably don't understand something but how will this possibly benefit creditors? Who is going to pay anything for warrants in startups (most of which will fail, since that's what happens to most startups)?
Earlier quoted context omitted.
I once worked at a place where an employee started their first day at the start of the shift. They mumbled their way through it to lunch where they never returned. That's the shortest I've personally seen. Absolutely not a c-suite role or anything management related though.
I had somebody sit near to me who wanted to leave at lunchtime but was convinced to stay on and left after the second day. This was on the ads team. The job involved managing ads on our site (via google ads and some other providers). They had never done this sort of thing before[1] and were not up to being thrown in the deep end. [1] I think they had done other sorts of advertising, just not for websites
Earlier quoted context omitted.
Of note from the article: she complained and was refunded the money after being stood up for the meeting, but they never cancelled the contract she paid to sign that gave them the right to buy her out of her own company for pennies, so once it passed to bankruptcy the creditors still took her company.
Wouldn't a contract like this be considered unenforceable? There were no services rendered, no exchange of value
What a psychopath. To anyone who may be in this kind of situation, trust your instincts and leave . It will not get better. You will find other, better opportunities elsewhere. Best lesson I ever learned was from a high level exec that had just started at the company where I worked. He quit in 2 weeks. Impressively, he did it without drama or really even causing bad will - he just told the CEO it wasn't a match, and…
I once worked at a place where an employee started their first day at the start of the shift. They mumbled their way through it to lunch where they never returned. That's the shortest I've personally seen. Absolutely not a c-suite role or anything management related though.
Earlier quoted context omitted.
Wouldn't a contract like this be considered unenforceable? There were no services rendered, no exchange of value
The contract SHOULD be unenforceable, however, not sure if bankruptcy court will actually resolve that matter. Maybe it would be a separate lawsuit?
> The court has since ordered the company to auction off the warrants it held in more than 1,000 of the startups that went through the accelerator program. I probably don't understand something but how will this possibly benefit creditors? Who is going to pay anything for warrants in startups (most of which will fail, since that's what happens to most startups)?
> The court has since ordered the company to auction off the warrants it held in more than 1,000 of the startups that went through the accelerator program. I probably don't understand something but how will this possibly benefit creditors? Who is going to pay anything for warrants in startups (most of which will fail, since that's what happens to most startups)?