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by counternotions 1682 days ago
Sounds like websites like Open Collective shouldn’t raise VC money in the first place. Now the community needs to make philanthropic donations to bail out the equity holders.
2 comments

The irony is that they went to VCs probably because they couldn’t harness the necessary public investment. If they manage to do that now, they would basically have gone through a circuitous route — with anything greater than a 1x return for the VC as a tax on the community investment, compared to direct community fundraising.
They don't need to. They may, if they value whatever they would get in the transaction more than the costs.