But the founders do have some leverage. If there is no incentive to do the deal they can just… not cause the deal to happen (different from blocking it, just not working on it).
This is the same reasons you see big pay packets for the execs when a company is doing poorly or is bankrupt: otherwise they could just go do something else (get a different job). The poor guy on the assembly line may not have the same option.
Make sure they give you and all employees a nice big sign on bonus and salary. They can deduct that from the proposed acquisition price.
Is it ethical? I say yes, you should get paid more than $0 for your hard work to be handed over. Should the investors get a payout too? Yes, but they shouldn't be getting 100% of it, ever.
they “have a guy” for this stuff and it’s completely random luck if something beneficial financially occurs to them
employees are simultaneously inept and believing the founder about anything, while also having a lack of transparency even if they aren’t inept
But the reason you raise is because you can turn each dollar into 1+ dollars of enterprise value.
If you raise and don't spend... You've accomplished nothing except throwing some money at lawyers.
It raises the ceiling but also the floor.
Be careful of getting buried.
feel free to change my view, for anyone passing by
As a broad generalization: investors in Northern California are more afraid of missing out on the upside than losing some in the downside. The further east you go the more risk averse they get, until by the time you get to Europe the terms tend to be quite abusive because the investors are so worried about losing their money.