[swombat]

Would an investor in startup X accept vesting stock from company Y as a payment for their stock in company X? Surely for investors, the stock has to vest immediately (if it's paid in stock)... It doesn't make sense to try and "keep the investor around", does it?

[benatkin]

Yes, but it would make for a less impressive deal. OMGPOP being acquired for much less is plausible, so another kind of a less impressive deal is plausible too.

Zynga could go bust. Without being acquired OMGPOP could go bust. So the investor would have to weigh the risk.

I also think there would have to be some cash and/or stock that would be available right away, for it to be an enticing deal.