Management Pay to Play Syndication 
Babbling VC
AUGUST 27, 2010
We were invested in a company which was actually a great business and I was aligned with management. Anyway, what ultimately happened is that one of the managers was let go, mostly due to pressure from said investor. . Well, The concept of "pay-to-play" hadn't quite sunk in with him.
Feld Thoughts
JULY 14, 2015
It usually happens in a later round, when the company is in fact worth much less than the liquidation preference overhang and insiders use a pay-to-play and a low valuation to reset the preferences and the cap table. It’s not pretty, but it happens.
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