
Adeo Ressi Fights “Atrocities Of Investors” With New Class Of Founder Stock - vaksel
http://www.techcrunch.com/2009/04/23/adeo-ressi-fights-atrocities-of-investors-with-new-class-of-founder-stock/
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ckjohnston
Most investors are going to demand standard terms. Any time you go with non-
market terms, you better have a very compelling product. And in a down economy
that's even more important.

To some degree negotiating a term sheet is like poker. There's some
provisions/terms you feel really strongly about, but there are other terms
you're secretly willing to sacrifice (as a negotiating tool). And the cardinal
rule to bluffing is not telling the other side your true intentions. If I'm
the investor, since Mr. Ressi has already stated he'll waive the provisions if
necessary, why wouldn't I just demand the provisions be waived?

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Shamiq
PG and/or other investors:

Can we get an opinion on those terms?

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mingyeow
Actually: bad timing. it is a buyer's market right now. sorry founders

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alexsolo
The thing that really annoys me is that "You are required to contribute a $50
application fee to help cover processing costs." in order to apply.

Seems somewhat scammy to me.

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pwoods
Summary Please. This is hurting my brain.

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frossie
I don't pretend to understand this stuff, but the summary seems to be:

When you raise money by selling stock, you give away power in your company in
exchange. This is a scheme to retain power by making the stock that you keep
more powerful than the one you sell to other people.

Pros: you retain more control. Cons: You might not find people to buy your
stock under those terms.

I'd be surprised if investors like this.

