I watched The Dropout last week (BBC iPlayer), about Elizabeth Holmes and the Theranos fraud. For those considering raising money for your startup, there was a line worth pondering, where Holmes asks: "Can the board fire me from my own company?". The reply that came back was quite chilling: "Of course they can. You took money from VCs. They own you." ๐ฑ ๐ ๐ ๐จ๐ฎ๐ง๐๐๐ซ๐ฌ: ๐ ๐๐ญ ๐๐๐ฏ๐ข๐๐ & ๐ข๐ง๐ฏ๐๐ฌ๐ญ๐จ๐ซ ๐ข๐ง๐ญ๐ซ๐จ๐ฌ ๐๐ซ๐จ๐ฆ ๐ ๐ฌ๐ญ๐๐ซ๐ญ๐ฎ๐ฉ ๐ฏ๐๐ญ๐๐ซ๐๐ง ๐ ๐๐ง๐ฏ๐๐ฌ๐ญ๐จ๐ซ๐ฌ: ๐ ๐๐ญ ๐ฆ๐ฒ ๐ฉ๐ซ๐-๐๐ข๐ฅ๐ญ๐๐ซ๐๐ & ๐ฉ๐๐ซ๐ฌ๐จ๐ง๐๐ฅ๐ข๐ฌ๐๐ ๐๐๐๐ฅ ๐๐ฅ๐จ๐ฐ ---------------------------- ๐ ๐๐ฒ ๐ง๐๐ฆ๐ ๐ข๐ฌ ๐๐ญ๐๐ฏ๐ ๐๐ซ๐จ๐๐ญ๐๐ซ โข ๐๐ฎ๐ข๐ฅ๐๐ข๐ง๐ ๐ฌ๐ญ๐๐ซ๐ญ๐ฎ๐ฉ๐ฌ ๐๐จ๐ซ 25+ ๐ฒ๐๐๐ซ๐ฌ ๐ ๐๐๐ข๐ฅ๐ฒ ๐ฉ๐จ๐ฌ๐ญ๐ฌ ๐ญ๐จ ๐ฌ๐ฎ๐ฉ๐ฉ๐จ๐ซ๐ญ ๐๐๐ซ๐ฅ๐ฒ-๐ฌ๐ญ๐๐ ๐ ๐ข๐ง๐ฏ๐๐ฌ๐ญ๐จ๐ซ๐ฌ ๐๐ง๐ ๐๐จ๐ฎ๐ง๐๐๐ซ๐ฌ #startups #angelinvestors #fundraising #founders #InvestmentReadiness
Would like to know a further explanation. Like if you are the majority shareholder, does the VC firm like have the power to fire you? Like if I owned 40% of my company, my Tech Lead owned 30% of my company and if a VC firm owned the rest of the 30%โฆโฆ they can fire me? (Hypothetical situation) Curious to ask.
Itโs not your company. You started the business. The other stakeholders and shareholders are all co-owners in different ways. Again, founders get almost no education in the governance, board management and legal responsibilities of running a business. Itโs an area where the ecosystem is totally letting down founders.
working for the successor company was an interesting experience trying to build and validate a real time point of care advanced blood analyzer augmented by machine learning (AI) analytics was difficult work. it sounds like it should already exist, yet it does not
I understand the stress and obsession to find fundings...I don't understand the most basic understanding and research on what it implies to onboard a VC...and I am not even talking about bad terms...
It's the harsh truth. But in this case the board should have exercised the right, earlier!
A great adaptation & and out performance by Amanda Seyfried What a story! Did nothing to help female entrepreneurs though sadly!
Yes, hard truth and at the same time the biggest nightmare of the founder who is not willing to leave the business...
I too watched it last week. Quite a story, and many lessons to be learned for new founders and dreamers.
It's a lesson you need to learn on your first VC deal, be careful what you wish for and all that. Interestingly though, in the case Holmes, I think she was irreplaceable by the time the Ponzi scheme started to really take hold. Smoke and mirror deals always need a useful idiot.
Providing Family Office & UHNW Technical Expertise For Creating Change | Venture Partner @ Beyond Earth Technologies | Founder & CEO @ Point Science Analytics | Life Science Mentor
5moA prime example of how fomo investing in the bio/deep tech space can go horrifically wrong. Investors need to do their technical dd with the right people on board! Also, i really need to watch this show - saw the ads!