A $50M acquisition gave $0 to the founder

I have posted a number of times in the past on how the most important element of any funding package is the deal terms. That deal terms are what you should be negotiating, not the valuation. And how if an investor wants to give you anything other than common shares, no matter how ‘normal’ they say it is – or how excited you are about your business – that you should renegotiate, giving up valuation for deal terms.

Here’s a good cautionary tale of what happens when you get the deal terms wrong: your company gets acquired for $50 million, and you as the founder get nothing from it.