This is usually bad for the founders, because if it sells for less than the valuation they received during funding, they will most-likely get nothing. The VC a

This is usually bad for the founders, because if it sells for less than the valuation they received during funding, they will most-likely get nothing. The VC always get paid first. Founders either need to get out early, understand that their position will eventually be just an employee, or not take in more funding than the company is worth. It does, however, work out in the tiny chance that the company sells for way more than it’s valued worth.