Convertible Note Issue — VC demanding 2x liquidation preference

Looking for advice on a legal issue. Here's what happened.

VC demanding 2x liquidation preference. I've been dealing with this for about 9 weeks now and the situation isn't improving.

I have already tried to resolve this directly but the other party is not cooperating.

What are my legal options here? Is it worth pursuing?

I've seen this play out several times in my field.

I ended up having everything documented, which cost about $3-6 but saved me a lot more in the long run.

I practice in this area. Here's my take on the legal issues.

The legal framework here involves both federal and state law. At the federal level, the relevant statute. Your state may provide additional protections.

I'd recommend documenting everything in writing from this point forward. Keep copies of all communications.

Been there. Here's what I learned.

The biggest mistake people make in this situation is escalating to a supervisor/manager. I'd recommend following the formal complaint procedure instead.

Just want to point out — the statute of limitations might be a factor here. In some states it's as short as 1-2 years. Don't sit on this too long.

I've seen this play out several times in my field.

I ended up having everything documented, which cost about $3-6 but saved me a lot more in the long run.