Waxman: Taking Series A capital is a marriage with no divorce option
David Waxman · 20VC: Why Convertible Notes Are Ridiculous, Why Party Rounds Are Bad For Both Founder and Investor & Why Pro-Rata Rights Are A Mess with David Waxman, Founding Partner @ TenOneTen Ventures · Nov 29, 2017 · at 18:15
David Waxman, Founding Partner at TenOneTen Ventures, emphasizes that early-stage investors remain on a startup's cap table indefinitely, making investor due diligence critical.
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“It's crazy because it's a marriage that is very, very hard to get out of, as you know. When you've taken an investor, particularly that first A-round investor, they are with you for the duration, whether you like them or not, and it's nearly impossible to, there's some highly public cases right now where people are not happy with their investors, and it's impossible to get them out, so before you get into a divorce-less marriage, it's probably worth doing your homework.”
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