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I think part of the reason founders try to keep as much stock as possible is to retain control for as long as they can through each investment round. If you ca
by Todd 17y ago
I think part of the reason founders try to keep as much stock as possible is to retain control for as long as they can through each investment round.
If you can demonstrate two cap sheets with the typical scenario and the feel-good scenario and it can be shown that founders loose control at about the same stage, this would probably be more digestable.
- goodgoblin 17y agoThat is a good point founders are worried about losing control and getting screwed. I'm not saying there aren't shady founders out there, but disproportionately in the anecdotes I've heard about its the VCs and investors raking the founders over the coals.
- anamax 17y ago> If you can demonstrate two cap sheets with the typical scenario and the feel-good scenario and it can be shown that founders loose control at about the same stage, this would probably be more digestable. You're assuming that employees are willing to take less money to help the founders retain control. Maybe, but I doubt it. If control is worth so much, perhaps founders should be willing to pay for it. One way to do so is to give liquidation preferences to employees.