The Khosla Dinner: 'Fire Your Co-Founders and Take Their Stock'
“Vinod leaned over and said: 'I'm impressed with you...'”
What this teaches
Prince's follow-up horror story: after Khosla Ventures issued a Series C term sheet, Vinod Khosla allegedly leaned over at dinner, while Prince's co-founders were away from the table, and suggested Prince fire them and take their equity. Cloudflare didn't take the money.
Why it matters
A named, specific account of post-term-sheet pressure tactics from one of the most prominent investors in the industry.
Key lessons
- A term sheet is not the end of diligence on the investor
- Watch how investors talk about your co-founders
- Walking away from capital is sometimes the right call
This is an editorial summary. The full thread, and the credit, belongs to Matthew Prince.
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