A nuclear startup is suing its own seed investor. Who's right? (I will not promote)
Valar Atomics, a nuclear startup, is suing one of its own investors, Day One Ventures, over its ~$1B Series B. Day One put in $1M at seed and $15M at the A. They own under 5%, but they have pro-rata, so they can buy into each new round to keep their stake. The new lead wanted the whole round, so major investors got asked to waive. Everyone did except Day One. Their contract had a spring-back: if anyone who waived got an allocation anyway, everyone's rights came back. One big insider was going to get one. So the day before closing, the majority voted the clause out. Day One says they offered to give up most of their allocation and Valar wanted them to give up every future round instead. I can see both sides. The lead wants to deploy the full check. But seed funds lose on most bets and pro-rata is how you double down on the one that works. If the majority can just delete the clause, I'm not sure what that right was worth. Where do you land on this?