Games that CEO Played : Betraying the Investor
This is the story of my friend about the my company’s previous CEO games. Currently, I am working in the start-up company in KL, Malaysia. During 4-months in this company, I’ve seen massive changes both in upper management and the working engineers.
In the beginning, the founder of this company invited venture capital to fund the start-up. They (it was two of them that had the idea of this kind of company) were engineers, good one, but with not so good marketing network.
After the company run for several years, they felt that the venture capitalist were taking too much of them. They were the one who was working very hard, but in the end most of the shares was within the venture capitalist. So, they did some tricks to make the things fair for them.
They took the money that belongs to the start-up company (the venture capitalist’s money) to fund new company (Note: I would categorized that as stealing the venture capitalist’s money). The new company was sharing the start-up company’s resource (including the engineers, tools, etc). So, there was two company inside the start-up company. One of them was secretly registered in Singapore Britain (owned by them), while the other one registered in Malaysia and owned by the venture capitalist. USA.
The problem was the Singapore’s Britain and USA company didn’t run very well, and there was nobody that was running the Malaysian company. So, the money was spent for nothing. Then, the venture capitalist found out their game.
As the result, the venture capitalist hold their money. The company stucked, with the engineers’ salary unpaid. They wanted to procede the case to the court, but one of the founder promised that they would pay back the money.
So, for about 3-months, there was no payment for the engineers. Everyone grumbled, but they couldn’t do anything. After 3-months, once they got their salary, they run from the company =)
How about the CEO’s fate ? Well, his friend was kicked out, and he was de-promoted into CTO. The new CEO comes from one of venture capitalist’s friend. But I think, the new CEO push him a lot, until he finally left the company.