Colin Charles Agenda

Recapping rounds

I read with great interest (including the comments thread) about recapping seed rounds by both Brad Feld and Joanne Wilson. Reprehensible beahviour. Also in general angels don’t go in more than the first round.

Which brings me to a general worry/concern – companies where early employees become minority shareholders (not option holders, shareholders). Where they pay their first few salaries in exchange for shares. Or if after some M&A activity, folk become shareholders. One can easily own 1% or more of a company this way.

When the going gets tough, vultures do come along.