A Dogfight Over a Dog Food Startup

As funding for startups outside artificial intelligence has dried up, more founders have contemplated takeover offers. But such deals can sour if the founders agree to an all-stock deal—and the acquiring business doesn’t live up to its promises.

That’s essentially the situation the shareholders of venture-backed Canadian startup Kabo allege they’re in, a little over a year after selling the company, which sells pet food directly to consumers.