Our only employee who's been with us for around 6 months is likely going to prison for several months for a fight of some sorts.
Unfortunately, we are learning of this same week as when we have a partner meeting with a VC that could very well lead our seed round.
How do we best disclose this to the VC in the most accurate manner? Should we do it in the meeting itself? After it?
Realistically, this sets us back couple months but is far from a company-killing event. The employee was stellar in his performance but is far from irreplaceable.
If you have an ongoing relationship with the VC then I would inform that person up front of the basic circumstances and say that you will present a plan of action for moving forward at the meeting. Be circumspect, as you have certain responsibilities towards your employee by law so you shouldn't disclose more than you absolutely need to (so as not to expose yourself to possible employment litigation).