Buy More Shares or Sell Current Shares
A former startup employer wants to buy back my shares at series C valuation price. They are also offering to sell me more shares at series C valuation price. Have you guys ever hear of something like this? Seems pretty odd and one of the reasons why I left was because I didn’t trust the CEO. I certainly don’t think the company is going public. I do think they are ripe for being bought by a competitor or a large company looking to fill a hole in their SaaS portfolio. If I sell now I would make 10x my cost basis. What are your experiences with this sort of offer? Should I sell, buy, or stay? HELP!
shady af. don’t take money from them and DEFINITELY don’t give them any more money. IANAL, and do get yourself one of those, because this could go downhill in a hurry.
Do you have voting shares? Are they trying to buy those and sell you non-voting shares? Investigate the share classes.
I am an options holder and the letter I got is super confusing. The CEO is a desperate and a first class dummy. He will sell his former and current employees out without hesitation. I think I am going to talk to a lawyer.
Get a lawyer but if you really don’t trust the CEO and you have a way to cash out now do it. Just make sure no sketchy terms in the deal. Cash in the bank account is always safer than monopoly money controlled by a “first class dummy” They might be raising a new round or just doing a secondary tender offer to help people sell. Hard to tell without more details
It looks like a private equity firm is trying to buy the series C and option shares. If the first class dummy remains as CEO I will cash out. If the equity firm gets new management in place I would rather hold on to the shares.
Do not instant sell. There is a very good chance they are trying to buy shares before some event that will make the shares more valuable.
That’s what I am thinking but then again the CEO got turned down by 14 VCs.
When you lose trust in your CEO, my recommendation is to sell and cut your losses. If you feel really optimistic about your company, then maybe do 50% hold