Exactly this. Say I raise 1m of VC money for 20% of my company. I could sell the company tomorrow for 1m (as I own 80% and have majority voting rights), and get to keep 800k without doing anything. The VC would lose 80% of their investment in a single day.
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Exactly this. Say I raise 1m of VC money for 20% of my company. I could sell the company tomorrow for 1m (as I own 80% and have majority voting rights), and get to keep 800k without doing anything. The VC would lose 80% of their investment in a single day.