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From a Wefunder post[1] about RC: "However, with these protections, in the very worst case scenario, a venture capitalist firm ideologically opposed to a “messy
by pclstyle 10y ago
From a Wefunder post[1] about RC: "However, with these protections, in the very worst case scenario, a venture capitalist firm ideologically opposed to a “messy cap table” (even though there are no voting rights) can simply repurchase the crowdfunded securities during the deal."
What does that last bit mean, regarding "repurchase the crowdfunded securities"? Do smaller investors run the risk of losing their shares entirely during a later-stage deal with a VC that wants to clean up the cap table?
[1] https://blog.wefunder.com/founders-the-strengths-and-dangers-of-investment-crowdfunding-d6fc229850b7 https://blog.wefunder.com/founders-the-strengths-and-dangers...
- npt4279 10y agoSmaller investors run the risk of being repurchased for fair market value at the time of the re-purchase. The Fix Congress Act being debated in Congress may solve this problem.