Great post for any Founder or member of the Exec team of a start-up on the reality of diverging investor/entrepreneur interests. Neither side is wrong, but it’s good to understand the underlying motivations.
For one founder who recently sold his startup, it was the culmination of a long journey. At the same time, the founder, who spoke to me on the condition of anonymity, had problems during the acquisition process, feeling bullied by a venture investor.
The investor argued against a sale of the startup, and then after agreeing to the sale, proceeded to call the buyer and yell about terms of the deal. The investor also pushed for certain terms that the founder felt were unfair and benefited the investor.
The founder was pleased with the outcome but felt powerless to stop this investor from essentially steamrolling the process.
“They didn’t want to sell because, for them, the deal was too small,”…
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