Probably but that would have come with a new lead investor who would have wanted a board seat and all of the other things that come with a $21m B round. They probably thought this would be the fastest way to escape the mistake without dragging it out.
$21m is a costly mistake, but not as expensive as the reputation hit if this had been a protracted issue for Finix or the other investors.
They could have sold the stake without the board seat (and anything else) for less than $21M but a lot more than $0. Seems like there has to be another VC firm that would have paid $10M overnight.
$21m is a costly mistake, but not as expensive as the reputation hit if this had been a protracted issue for Finix or the other investors.