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Can VC force a sale easily

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No says Bijan

http://abovethecrowd.com/2009/07/27/i-do-not-believe-that-zappos-was-forced-to-sell/ No says Bill Gurley The first thing to point out is that it is very unlikely Sequoia had any “mechanism” to “force” a sale of the company.

Tony is a super succesful entrepreneur, with one exit in the late 90s for almost $300 million, as well as successful investments out of his own fund. If Sequoia took him to the woodshed like this with the liquidation preference, and the forced sale, imagine what they would do to the unseasoned entrepreneur. As an entrepreneur today, you can do so much more with so much less. http://web2.sys-con.com/node/1046708 Yes !

VC can force a sale easily http://www.thefunded.com/funds/item/5822 From a purely technical standpoint, venture capitalists can't easily 'fire founders' either, yet two thirds of founding teams are eliminated. In fact, most investment agreements have more provisions to force a sale than they do to eliminate a founder.