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We are in full agreement that risk and reward go together. In fact, my suggestion is a way to shift more risk and more reward onto investors. If I impose the c
by kartickv 11y ago
We are in full agreement that risk and reward go together. In fact, my suggestion is a way to shift more risk and more reward onto investors.
If I impose the condition that investors get paid only after employees get paid, I expect that I'll get investment at a lower valuation. Which means greater upside for investors if the company becomes a big success.
Alternatively, if each employee's upside is limited, then that leaves more of the money (again if the company succeeds) for investors.
In either case, the goal is to shift more risk AND reward onto investors, not only risk.