I’m an amateur angel. I put money into a tech startup, and the CEO spent the money on “personal” travel and other questionable things. I don’t think what he did was ethical or good for the business. But is it ever worth suing a startup that has no money left and is clearly about to go under?
by Naomi Kokubo, Cofounder of Founders Space
In short, I’d say “No.” You bet on this CEO, and it didn’t pan out the way you expected. I suggest you cut your losses and move on. I wouldn’t waste more time on this company. Also, if the company is almost out of money, you won’t recover anything even if you did win in court. It’s just throwing good money after bad.