Welcome to the “Class F” stock, to protect you against greedy VCs
TheFunded.com, a site that lets entrepreneurs rate venture capitalists, has released documentation for a new class of common stock called “Class F,” which it says entrepreneurs can use to give them more control versus the venture capitalists who invest in them.
Working closely with an attorney Yokum Taku at Wilson Sonsini, a top Silicon Valley law firm, TheFunded has issued the documents for entrepreneurs to use as templates for agreements when they form their company and… Continue Reading
The Funded rates individual VCs — now the heat is really on
Venture capitalists were already upset by The Funded, a site that lets entrepreneurs rate venture capital firms. Entrepreneurs have left nasty remarks on the the site about firms, which distressed some VCs so much that at least a few have threatened lawsuits to try to muzzle critical remarks.
Now The Funded is going a step further. It’s created numeric ratings of individual partners. This brings much more public scrutiny to the secretive VC world than ever… Continue Reading
Hercules slaps The Funded with “Cease and Desist”
(updated with response from Hercules)
Hercules Technology, a Silicon Valley debt firm, has sent The Funded, a site that lets CEOs comment on their investors, with a “cease and desist” letter.
The letter cites a posting on The Funded that says Hercules is “horrible” and recommends that other CEOs should “avoid it like the plague.” Hercules misrepresented its investment review process and failed to understand basic math, the commenter continued.
Hercules’ letter to The Funded said the comment… Continue Reading