This would be disastrous for startups - for $100 you get a say in what we do?

How deep does that go? Change of control events? That would basically mean that a startup would have to disclose that they were in negotiations for acquisition/investment/whatever, with whom, and for how much. That would basically mean potential acquisitions would become public knowledge - it's hard enough keeping them quiet when it's just the startup, their investors, and the acquirer involved.

Well your vote would be proportional to your investment, $100 out of $2.4M, in this case.

> That would basically mean potential acquisitions would become public knowledge

That would kind of be the point, it would be about fairness. People may not want to invest in a promising project that could change the world, just for it to be bought up by the next FB/Google.

I don't know of any founder who would agree to this. Every founder I have met would never want to give a third party that much control unless absolutely necessary, which means the only companies who would agree to it are the ones who have no other choice.

I think the sale would still have gone though. For a lot of people putting in a small amount of money and getting a HUGE return on it is reward enough in it's own. So if some people put in 500-1000 and ended up getting 10x or more their investment back during an acquisition, unless they had some huge personal investment, it'd be hard to turn down that kind of money in the bank. I think this would be especially true if things went to scale. The big players would call the shots though and do the same thing as they do at the board now, choose the option that makes them the most $.