Hero Cosmetics Rejected Early 2020 VC Deals With Predatory Liquidation Preferences
Dwight Lee · Hero Cosmetics: Ju Rhyu and Dwight Lee · Dec 30, 2024 · at 1:03:10
Hero Cosmetics co-founder Dwight Lee details the punitive liquidation preference terms investors demanded during the March 2020 market crash.
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“There were just a lot of little tricks, a lot of trap doors and, you know, onerous prep structures so that essentially we could sell the business later on and still walk away with barely anything. I mean, they were just very investor friendly, very founder unfriendly. We did turn them down, yes.”
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