VC Deedy: founder turned down high 8-figure exit to protect employees from raw M&A deal
deedydas · x · 2026-09-05
Investor Deedy shares a real anecdote: a founder walked away from a high 8-figure acquisition offer because terms gutted the cap table — employees got peanuts and most would be fired while management cashed out.
- Corp dev teams use fear tactics: "your business is going nowhere," "this is life-changing money"
- The founder refused, demanding all employees be hired unconditionally and paid out
- Broader lesson for startup employees: founders can cut you out of M&A, shrink retention pools, over-dilute equity, fire you before your cliff, and game option plans and 409A pricing — founder character is the key diligence item
Related event: Founder Rejected Eight-Figure Offer Over Harsh Cap Table Terms(2 posts)→
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