Assume you can’t kick out investors. And plan accordingly.
There are some limited exceptions, especially if you do nonstandard types of convertible debt.
But for the most part, you are stuck with your investors forever. In the U.S. and Delaware and California, and under standard VC terms, it’s almost impossible not just to kick investors out — but even to deny them a vote.
Absent other terms, every series / class of investor is going to at least get a vote on fundraising, selling the company, and adding to the stock option pool, among other factors.
This can produce a lot of headaches down the road, and potentially worse.
So pick investors:
- You trust; that
- Can help the most.
Everything else is secondary. But those two points do encompass a lot of variables.
If you aren’t sure … then check references. It’s OK.