Does a founder have to mandatorily disclose their personal investment/equity in other startup that they formed and also about their mentor role there?

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JASON LEMKIN

Yes.

And as investor — if I didn’t hear about it at almost the start of the investment process — I’m out.

It’s great you are still helping another company you got off the ground.  But the fact that you are hesitating to even disclose it tells me something is wrong.  The other company is taking up too much of your time?  It’s a time conflict, if not a legal one?  There’s something messy in your exist there?  Something.

It’s totally OK if you have a few other angel investments and the like, and that you have equity in other ventures you helped start before.

But I need 100.0000% of your attention on this one.  It’s fine to keep “in the game” by being on one other board, making a few small angel investments.

But … two material commitments is one too many for 99.999% of us.

You may be the next Elon or Jack.  Just not yet.  Not today.

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Published on December 21, 2015
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