vC demanding 2x liquidation preference situation

I publish illustrative scenarios prepared by my practice. All participants and conversations are fictional. The fictional posts are not posts by real users, accounts of client experiences, or reports of actual results.

Illustrative scenario prepared by my practice.

For informational purposes only. This is not legal advice. Laws vary by jurisdiction. Consult a qualified attorney for advice specific to your situation.

Hypothetical question

I'm in a difficult situation and trying to figure out my next steps.

VC demanding 2x liquidation preference. I've been dealing with this for about 13 months now and the situation isn't improving.

I have already done some research online but the other party is not cooperating.

Should I hire a lawyer for this or try to handle it myself?

Illustrative response

NAL, but from what I've read, you should check your state's specific laws. Your mileage may vary depending on the specifics.

Illustrative response

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.

Illustrative response

You could try handling it yourself but honestly a lawyer speeds things up 10x.

Illustrative response

Consider future fundraising needs when choosing your entity type.

vC demanding 2x liquidation preference situation

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