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A food VC firm plotted a hostile takeover within three months

Mary Waldner · Mary's Gone Crackers: Mary Waldner · Jul 10, 2023 · at 44:00

Mary Waldner, founder of Mary's Gone Crackers, describes how the relationship with their first institutional venture capital investors quickly soured within three months into a hostile takeover effort.

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“They had a very different agenda. I think it maybe took about three months where, you know, we had a little bit of a honeymoon phase where they did connect us with a better sales force and better manufacturing expertise and things like that, but it was very soon that it became clear that what they wanted was to take over the company.”

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More from Mary Waldner

Assertion Not checkable as stated
VC covenants blocked Mary's Gone Crackers from unapproved outside fundraising
“They had set it up that we couldn't get more money beyond a certain amount without their approval”
Mary Waldner Jul 10, 2023 ▶ 46:03 Mary's Gone Crackers: Mary Waldner
Assertion Not checkable as stated
Hostile VC investors refused a founder buyout offer
“We asked them if we could buy them out. They refused.”
Mary Waldner Jul 10, 2023 ▶ 51:46 Mary's Gone Crackers: Mary Waldner
Assertion Supported
Mary's Gone Crackers had to invent custom machinery for gluten-free dough
“What ended up happening is we had to invent a machine that would flatten them, because that was the challenge. So we got the blobs on the pan, but then we had to create our own piece of equipment that flattened them.”
Mary Waldner Jul 10, 2023 ▶ 25:39 Mary's Gone Crackers: Mary Waldner
Assertion Not checkable as stated
A Bechtel executive led the seed round, funding half of it
“So he ended up becoming a lead investor, and he brought in a lot of, a few other Bechdel people and other people that he knew he brought in half the money.”
Mary Waldner Jul 10, 2023 ▶ 27:41 Mary's Gone Crackers: Mary Waldner
Disclosure
Mary Waldner amassed $150,000 in credit card debt before raising seed
“You know, we were probably, probably about a 150,000 dollars in debt.”
Mary Waldner Jul 10, 2023 ▶ 38:01 Mary's Gone Crackers: Mary Waldner
Disclosure
A venture capital firm bought 14 percent of Mary's Gone Crackers
“14%, actually, it wasn't a significant share, or we would have lost the company.”
Mary Waldner Jul 10, 2023 ▶ 43:47 Mary's Gone Crackers: Mary Waldner
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