Hypothetically speaking, a startup gets some rounds of investment from VCs, operates for a few years, and run out of runway. What do these final months look like? Do the investors try to get their money back?
Hypothetically speaking, a startup gets some rounds of investment from VCs, operates for a few years, and run out of runway. What do these final months look like? Do the investors try to get their money back?
The IT startup I worked at went from providing free food, snacks and beverages to bringing in management consultants clocking hundreds of dollars per hour and finally investing in tonnes of household chemicals while they couldn’t afford to pay our wages. I think they went through bankruptcy at least three times while I worked there, before the former CEO and CTO fled the country.
Edit: The VC’s were in cahoots with the management consultants. No idea if they were involved with the household chemicals. The fools who invested in the IPOs however were fucked over twice.
I don’t understand what happened with the chemicals?
As a last ditch attempt to avoid bankruptcy someone in management decided to join a MLM program to “raise further money”. Which involved lots of household chemicals that we were supposed to sell to clients at the same time as we were doing our actual jobs (both unpaid).
“You know what’d really help our finances? Being sucked into a DoTerra pyramid scheme.”
Next level scummy haha.