"Can entrepreneurs be sued by their funders for fraud? Yes."
Are they ever? No.
This article is a strangely mixed bag. Some of these points are right and some are wrong. Like worrying about being sued by investors; I've never once heard of that happening to a tech startup doing a series A round.
The number one legal problem for early stage startups is unclear title to their IP-- e.g. because they took code from a former employer. That is the only really fatal mistake. Most other things can be fixed later.
Are they ever? No.
This article is a strangely mixed bag. Some of these points are right and some are wrong. Like worrying about being sued by investors; I've never once heard of that happening to a tech startup doing a series A round.
The number one legal problem for early stage startups is unclear title to their IP-- e.g. because they took code from a former employer. That is the only really fatal mistake. Most other things can be fixed later.