Schroter: Distressed startup renegotiation requires a definitive stance, not open-ended talks
Will Schroter · Startup Acquisition Stories Podcast with Wil Schroter, Founder of Startups.com · Feb 27, 2024 · at 22:38
Will Schroter (Founder of Startups.com) discusses tactical playbooks for distressed founders renegotiating cap tables with venture investors.
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“By the time you're going to have that conversation, it needs to be definitive. Dude, I'm out. I'm out of money. I'm out of, like, hell, like my spouse is trying to, you know, is, is tired of dealing with my shit. I need to get out. Okay, now hear me out. Now, need to get out could mean two things. It could mean I need to sell the business, or I need to negotiate a new deal. But if you leave it as in, hey, let's just talk about it won't go your way. Because at which point the investors think maybe you'll just keep abusing yourself, they'll let you keep abusing yourself, sadly.”
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