
Ask HN: Low Ball Offer from Shady Investor - reza362
I worked with a high profile investor over the last year. He gained access to my IP by promising to invest in my company. Then over time few times offered multiple way of partnership and then changed them. Till I
got a low ball offer which is 9 times below his
suggestions. I countered the offer. I am ready
to move out from his premises as he gave me free office. I am confident he has made multiple million dollars from my work so far. What is best way to deal with this situation?
======
anonsivalley652
0\. Never "marry" an investor you're uncomfortable jumping into "bed" with.

1\. Never work too close in proximity to an investor, or there's the potential
for them to getting too hands-on or just showing up.

2\. Ignore lowball offers. That's the initial round of "sucker offers." You
don't need to take those seriously or let it challenge your value, because
they're also probing for any weaknesses and your anxiety level/hastiness to
complete a deal. I would politely laugh it off and make it clear I didn't just
freshly fall off the turnip truck into the world this morning.

3\. It comes across from what you're saying that you think you got played for
a sucker, so it sounds like they don't respect you enough to pay you what you
created. Is there any direct evidence of this rather than just suspicions? Are
they supposed to pay you for them selling/licensing it? Do they keep you in
the loop if there are licensees interested?

4\. Licensing - Did you ask for royalties? Are there patents involved? Have a
lawyer look-over any agreements, because you maybe owed payments.

5\. I have to ask an obviously trivial question - This isn't like my mom's
former coworker who claims her MBA classmate "stole her business plan/idea"
for Papa Murphy's (yet didn't execute on it), right?

6\. Handling the investor: there's basically three readily-apparent options:

i. Make no waves and never work with this investor again.

ii. Waste treasure on a lawsuit and find it difficult to ever get funding
again.

iii. Ask around. See if anything unprofessional has happened to others in the
portfolio. There maybe ways to compel them to behave more generously and
professionally by social means.. because a VC's reputation is just about all
they have, and they won't have a network without it.

