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Ask HN: What did you do when your investors invest in competing companies?

22 点作者 bwang29将近 8 年前
Say you've been working on a startup that's doing very well and your seed round investor just invested into a company with similar technology, is there anything founders should be aware of such as disclosing information to investors?

5 条评论

amorphid将近 8 年前
IANAL.<p>Correct me if I am wrong, but an investor&#x27;s main interest to make money. They want you to succeed. If for some reason they are just milking you for information, remember you aren&#x27;t under any obligation to tell them all your secrets. If the investor isn&#x27;t a board member, you don&#x27;t really have to tell them anything at all.<p>Don&#x27;t stress too much about your investors. The only thing you can control is focusing on building a killer company. And you may find that your &quot;competitor&quot; sells a similar product to a different customer base, effectively making them not your competitor.
bkovacev将近 8 年前
The investors always protects their own interest - remember that. They not only bet on the technology, but also on the people behind it. Depending on the agreement, the investor might not &quot;owe&quot; you anything. Thus, if they invested in another product in the same emerging market, they&#x27;re trying to ensure greater % of success and ROI for themselves.<p>But, you do &quot;owe&quot; things to an investor - like reports, hard work etc. What you do, however, OWE to yourself is that you protect your idea&#x2F;product to the fullest.<p>Thus, you only feed them what they need to know, thus disclose only relevant financial info. If they ask for other info be sure to be brief. Don&#x27;t disclose the actual details about the tech behind it.<p>I assume if you know who they invested in, you know the amount and probably the terms, thus assess. More investments &gt; higher risk &gt; higher reward. If those investments were &lt;250k, that&#x27;s normal and I wouldn&#x27;t be to worried about it.
Powerofmene将近 8 年前
Provide what is required and do not feel it necessary to share things beyond that especially with regards to new technologies etc that you are developing.<p>Remember that your investor investing in a company that does something similar to yours is not necessarily a bad thing. Competition can be a very good thing. It fosters innovation and creativity, helps keep things moving forward and brings more attention to emerging technologies, to name a few, etc. That investment may be better for your company than your presently realize.<p>Remember, one boat is a cruise; two boats make a race.
thiagooffm将近 8 年前
Get a loan in the bank and invest some in their business if you believe in the market of the product? :-)
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magacloud将近 8 年前
Our investors consult us about the decision to invest in other companies, sometimes, they introduce to competitors to see if we can triple the outcome if we work together.<p>Like many said, investors want to make money.