4 ms·
Maybe I'm a cynic, but I wouldn't presume Joel has great answers for these questions. As DHH says in his post, he may just want to capitalize on the service's
by mikebo 17y ago
Maybe I'm a cynic, but I wouldn't presume Joel has great answers for these questions. As DHH says in his post, he may just want to capitalize on the service's early success and take some money off the table.
- spolsky 17y agoI don't think many VCs let you "take money off the table" in the Series A. It has been done, but it's rare, and it's a sign that a founder doesn't believe in the business prospects that they're asking everybody else to invest in.
- anamax 17y ago> It has been done, but it's rare, and it's a sign that a founder doesn't believe in the business prospects that they're asking everybody else to invest in. Fred Wilson (avc.com) disagrees. He thinks that letting founders take money off the table is a great idea in several circumstances. You don't want founders looking for/taking an exit too soon.
- portman 17y agoFred is one of the many believers in the so-called "secondary" raise, but NOT for Series A. http://www.avc.com/a_vc/2010/01/the-tug-of-war-between-ma-and-vc.html http://www.avc.com/a_vc/2010/01/the-tug-of-war-between-ma-an...
- Sukotto 17y agoI found PG's essay on this pretty interesting too: http://paulgraham.com/vcsqueeze.html http://paulgraham.com/vcsqueeze.html
- netcan 17y agoI guess you are getting a lot of people throwing your old posts back at you, but... Why not? You say yourself that the 1 in 20 shot at a lot doesn't usually make sense for an entrepreneur with other options. If you prefer a partial cash while betting big with the other piece, why should this mean you don't "believe in the business prospects that they're asking everybody else to invest in?" It doesn't mean this when anyone else does it.
- Create 17y agoCharles H. Ferguson, High Stakes, No Prisoners: A Winner's Tale of Greed and Glory in the Internet Wars (W. W. Norton & Company, 2001).