As you know, VC is a reputation economy and the VCs all talk and collude. VCs can get whatever terms they want because they know that if you say no, they'll bad-mouth you to the rest of the investor community. It's extortion.
People don't end up in those kinds of deals because they're stupid. Not all of them, at least. Often, they have no other choice because an investor will either back them or end them, the latter being a power they have in this backward, feudalistic reputation economy.
If you feel that way about investors, don't take outside investment. We didn't. Things worked out peachy.
It's a strange thing, to feel entitled to set the terms under which people give you their money. We didn't like the available terms. I don't have much nice to say about the venture capitalists I've known. But I don't have an elaborate worldview built around those impressions, and you do. You should try to shake it off.
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You are totally free to only accept money from investors who will have no control over your company.
As you know, VC is a reputation economy and the VCs all talk and collude. VCs can get whatever terms they want because they know that if you say no, they'll bad-mouth you to the rest of the investor community. It's extortion.
People don't end up in those kinds of deals because they're stupid. Not all of them, at least. Often, they have no other choice because an investor will either back them or end them, the latter being a power they have in this backward, feudalistic reputation economy.
If you feel that way about investors, don't take outside investment. We didn't. Things worked out peachy.
It's a strange thing, to feel entitled to set the terms under which people give you their money. We didn't like the available terms. I don't have much nice to say about the venture capitalists I've known. But I don't have an elaborate worldview built around those impressions, and you do. You should try to shake it off.
Investors become owners. Since when do owners have no say in when they sell their property?
It's not at all true that all investors end up with control. In fact, in the large, most investors don't.
Neither here nor there, though, because it was a buyer's side investor that scotched this deal.