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A comment on The Danger of Being Default Alive. Parent comment

Re:The Danger of Being Default Alive by Animats on Friday November 18, 2016 @01:23PM (#12988878)
"They should be saying if you kill the current company I will put x million into your next company."

If the VCs are not the sole owners of the company, that will get them a lawsuit from the other investors for breach of duty as a director. Often the VCs don't have the authority to kill the company.

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Re:The Danger of Being Default Alive by danieltillett on Friday November 18, 2016 @04:03PM (#12990053)
I was not suggesting that they be so explicit about it, but the VCs could have a general policy that they will always back founders in their next venture if the founders create a profitable company. The founders knowing this will kill or hand over the zombies themselves.
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