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Wait until they are close to exiting and then threaten to sue for 5%, settle for 2%. It's the absolute worst timing for a startup to get hit with something like
by computer 12y ago
Wait until they are close to exiting and then threaten to sue for 5%, settle for 2%. It's the absolute worst timing for a startup to get hit with something like this.
Of course, only do it if you're actually in the right, so check with a lawyer first.
- hga 12y agoIndeed. At any investment event, they're exquisitely vulnerable to the threat of a lawsuit.
- deleted 12y ago[deleted]
- rohanpai 12y agoHow will you know if someone is about to close or exit? I feel like startups go out of their way to keep that private.
- computer 12y agoThat's a problem. It's easiest if the exit is an IPO, since that's announced in advance. I've seen this strategy used on a fairly large company about to be acquired by a public company, when there were already rumors going around before the acquisition. It caused the management there an enormous amount of stress, and they settled for a significant amount of money, even when they believed a court would rule in their favor. You're an awful person if you use this, so better make sure the company you use it on is even worse.