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So our choices were: a) invest in Dalton b) invest in neither or c) invest in Kevin and violate our commitment to Dalton.

I would have thought that suggesting that Dalton and Kevin join forces would have been one of the options.

What happens when the idea doesn't work out and they pivot? Do they stay together then?

Presumably they'd then be in the same position as any co-founders regarding a pivot: They'd have to reach agreement on whether and how to alter their plan.

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