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> 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. Fr
by 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