
Venture Capitalists V. Founders: Battle At Mochi Media - vaksel
http://www.techcrunch.com/2009/06/29/venture-capitalists-v-founders-battle-at-mochi-media/
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grellas
Don't know Mochi Media but this is the very type of downstream risk for
founders that Delaware poses - once VCs control a company, they can cram down
a merger or sale without needing to get the consent of those who control the
common stock (i.e., the founders).

In California, they would need the approval of both classes of stock to do
such a cram down and it could never happen unless the founding team approved.

I have posted on this on this site ("Why not to incorporate in Delaware"). See
my profile under "submissions" for the link.

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alain94040
Transparency would be great, instead of back-room dealings.

One of the reasons why I like sites like <http://thefunded.com>

For too long, bad behavior has been allowed as long as it stayed hidden from
public view.

