>>107930085Unless they're entirely funded by debt at seed stage which is not what Venture cap does, because that would drain cash from a cash tight company which defeats the purpose. That means they're funded by equity participation, the valuation the VC would want to get bought out, unless there's a prevailing agreement with management would be in function of generated profitability.
So what would have happened instead is that management would have had needed to do what essentially amounts to a management buyout which would necessitate raising a ton of debt & having to change the revenue share to pay down the debt.
Now that would be viable if all the talents bought in/agreed to it, but with people being able to walk away at any time it's not a valid proposition
