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by rdl
4509 days ago
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Seed stage investors have essentially no power. They have convertible notes (i.e. are debtholders) -- this gives them about as much power over you as your credit card company, as long as you stay current on the payments (which are usually deferred in the contract); YC is common-holder (and has 2-10%). You can literally ignore the investors for at least the duration of the note (and probably longer) with no real repercussions. If you sell the company, they'll be able to get in line for money (and generally get paid first), but until Series A, investors have essentially no control to do anything. In practice, being a dick to your investors (intentionally or unintentionally) is a bad idea (sorry! was busy!), as they usually will help you a lot more if they know how they can help you, but otherwise, it's pretty much at the bottom of concerns. |
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