Ask Timpo: my backers have frozen me out. Help!
Q: The business I started failed to hit its sales targets and I was ousted by my VC backers. The business is now in administration and the VCs are blocking my bid to buy it back. Help!
My VCs are blocking my bid to buy back my business
I'm desperate to get it back. Help!
A: Before going any further, be absolutely certain you want your business back.
You have an understandable emotional urge to turn your idea into a success, while proving a point to your disloyal backers. But does such a deal make commercial sense?
You missed your sales budget and the company has been a financial failure – what makes you think you can do better the second time around?
If, having thought it through, you’re still determined to get back in the boardroom, try to figure out why the VCs want you frozen out.
Although the administrator has control, the VCs, as major creditors, could have a big influence on the outcome. If they are lining up a well-heeled buyer or are keen to do a pre-pack themselves, you probably are wasting your time.
Put your offer in writing to stake your claim, then ask for a meeting with the VCs and bluntly ask why they are blocking your plans. But ask them nicely – you need to persuade them that you can offer the best solution.
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