Member-only story
“I think we should shut down the company,” “Raul”, one of our two investors, said to me during our board meeting.
We were in the middle of raising our Series B funding, and we already had one term sheet in hand. Raul had rejected the term sheet after initially accepting it.
Raul’s flip-flopping the past several months on the term sheet and other matters related to the company’s financing had put us in the position of being out of money. We were living on bridge loans, and that is not a strong position to be in if you’re running a startup.
But we had four investors that were getting pretty close to giving us another term sheet. So Raul’s request took me by surprise. In fact, we’d just presented to the partnership of one fund, and the meeting had gone really well.
However, what really surprised me was our other investor agreed to shut the company down. He probably didn’t want to face the prospect of supporting the company on his own.
I had to think fast or we were going to shut down the company.
My heart rate went up, but I felt calm. I was going through in my head our options.
