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Investor demanding money back because they think we should raise more. How to deal with it?

Angel investor is forcing us to buy back shares in-spite of business doing well – they want us to raise more capital but we want to start the process when we feel ready.

How do we handle with minimum distraction? Std YC safe

  • This is where you respectfully tell the angel that you appreciate them sharing their perspective, and that you will take it into consideration moving forward.

    And then you do whatever you feel is best for the company. Angels, customers, and employees will push you around if you let them. So don’t let them.

    Reply

    • To follow up on my previous comment: The YC SAFE primer states explicitly that a safe doesn’t have an expiration date so there is no need to rush. Maybe you decide you don’t need to raise more capital at all. That’s not an issue for the SAFE holder as they are still entitled to their shares when the company gets acquired or IPOs.

      Reply

  • Um you raise the money idiot. Why do you think they gave it to you to begin with? You think they wanted to invest in you to be profitable? Ha! Learn the game! There’s valuations for a reason. The first guy gives you $100k @10% so the second guy gives you $1m @30% so the third guy gives you $100m @50% and so forth…. that investment was only sort of about you. It’s great if you win, but it doesn’t matter.

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