Silicon Valley VCs opened the floodgates to a gusher of billion-dollar startups with untouchable founders. Now that world is getting turned upside down.
Startup founders about to pitch VCs should "be prepared to be hammered," the panelist said.
In practice, it means giving startup founders outsized control of their companies through special classes of supervoting stock, favorable board structures, and other perquisites.
The appeal is obvious for startup founders, who get almost complete say in how to build, run, and grow their business.
And with the economic downturn deepening, the shift away from the generous funding terms of old does not look likely to reverse course anytime soon.
But if the trend becomes more widespread, VC firms could be left holding a very expensive bag.
Disclaimer: This story is auto-aggregated & summarized by a computer program and has not been created by StartupAround.
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