Id like to know what investment options, equity or debt financing options exists amongst VC Firms for Entrepreneurs wanting to buy out their Investors stake in the business. In other words, exit investors from the company and as a founder own it in full.
Further, investors have created a loan account to the company and own a large chunk of it. Could the loan account affect the price of their equity in a good or bad way?
Any options, advice or recommendations ?
Part of the proceeds from a VC financing round can be used to buy out existing investors; that's not uncommon. Buying out existing VC investors is uncommon, but surely it's been done by someone.
If you as a founder have enough votes, then you could surely approve a redemption of investors' stock, but I'd guess that VC investors would have the ability to block a redemption without their approval. Check your legal documents.
What kind of loan: convertible debt or a regular non-convertible loan?