What Happens When Your Startup Goes Bankraupt

Sam Biddle writes about an employee at Meez, a gaming company that just recapitalized itself. In order to pay off a $16.04 million debt, it did a reverse stock split of 8,000,000 to 1. This left the employee with a nice fat check totaling- 56 cents. At least the CEO took the time to hand-write the check.
The employee says

People all too often don't hear about the harsh reality that sometimes happens. You bust your ass for years and inflict a self brainwashing mentality that your product kicks ass, only to find out that it a series of mistakes were made that end up forcing a company into the situation that we see here.

I doubt this will stop people from joining/creating Startups, but it's worthy reminder of the possibility of failure. So if you're in a Startup, make sure to eat as much snacks from the breakroom as you can, it just might be all that you get at the end!
[via LifeHacker]