Investor Rights Revisited

Originally a thread on X/Twitter:

1/5: Yesterday I put out a post about Investor Rights and it’s definitely been the catalyst for some interesting conversations. I appreciate the thoughtful perspectives on the topic and in full disclosure, my firm has been on both sides of the issue so I “get it”.

2/5: Based on some DMs that I’ve received and the dialogue that followed (with Investors who I respect immensely), I think a few additional points are worth pointing out:

3/5: Many downstream investors can’t add nearly as much value as some of the best Angel and Seed Investors out there. Not all investors are the same and therefore being “fair and equitable” means treating different investors differently.

4/5: Issuing term sheets that allow everyone to be happy should be a normal practice. Sometimes a situation doesn’t allow this which really sucks. My main takeaway from being in the middle of many deals recently is that the environment is making collective happiness difficult.

5/5: So to all the people who reached out to chat – thank you. Debate and discussion help me refine frameworks. And while Twitter is a medium I’ve grown to love, the format isn’t fantastic for topics that require nuance. Too much context hits the cutting room floor.