Our board was made up of
friends and the two co-founders. We need to recruit some others people before
we raised money and wanted someone with fundraising experience.
We interviewed several
people and couldn’t find the right person. Then a friend introduced us to his
father, a retired banker looking for something interesting to do. We all liked
him and offered him the position and some share options. He attended the first
board meeting and had some good ideas. He used his network to find us three
potential investors. They all seemed nice knew one another. One had a teach
background, which would be good for us.
Development work on our
app went quickly and there was great market feedback. We needed more money to
continue development. Our four new Directors said they would match any
Two days later they
introduced us to Dragon Investments. After a lot of hassle they agreed to buy
40% of the company at a $10M valuation. This seemed good since we were only two
years old. Once the investment was made, Dragon and the four directors owned
80% of the company.
At the first board meeting
they said they wanted a new CEO; I was voted off the board and fired. They paid
me six months salary and I kept my options. At the next meeting they fired two
more from the original team. They announced that Sunrise Technologies offered
to buy the company based on a $12M valuation. The two companies merged.
Six months later we found
out that our friend’s father and two of the Directors were also directors of
Sunrise. We also learned the merged companies were sold to a third party