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by jdoliner 3575 days ago
Absolutely, it of course depends on the terms. But in my experience investments for that amount never involve a board seat and normally involve a smallish amount of equity so investors have no means to pressure companies into taking an A later if they don't want to. There is some expectation that you'll do something with this money and normally for early stage companies that means hiring people, but I've never heard of an investor strong arming an entrepreneur into hiring people when they didn't want to.

Where does your belief that they do come from?

1 comments

You must have never heard of situations where a founder gets pushed out of their company by the VC because they are not meeting certain targets.
Pretty sure parent has heard of those situations since he explained why this wasn't one of them.
That situation is not possible in a scenario where the investor has minority control of the company (ie a seed round).