Simple framework for diligencing investors with portfolio founders: - would happily give pro rata again (~10%) - happy they don’t have / wish didn’t have pro rata (~80%) - wish they weren’t on the cap table (~10%) When a founder waffles between 1/2, it’s a 2. Between 2/3, run.
If you’re doing well as a company, it’s easy to find buyers - it isn’t as easy to find sellers.
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so maybe this needs to be a standard term going forward, ability to force someone off the cap table. If founders can be fired, no reason why the VC's get their seat at the table for life.
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Why would I invest in a company if I don’t get to decide when to sell my shares?
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