One Of Our Investors Just Closed Shop. What Should We Do?
Ask The VC
JANUARY 7, 2013
Q: What is the best path to take if a VC which has invested in my company closes down, but we have not exited and are still operating profitably ? What happens to the LLC entity that was formed at the time of investment? Do we ask the VC for our shares back or buy them back at a discount? . A (Brad): First, you need to understand what actually happened to your VC firm. There are lots of specific points in time to consider. Let’s start with two magic milestones – year 5 and year 10.