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Founders are committed, but usually have better cash out options than employees do in the middle of the process. There are founders get millions of dollars duri
by mahyarm 10y ago
Founders are committed, but usually have better cash out options than employees do in the middle of the process. There are founders get millions of dollars during later funding rounds to incentivize them to not take early buy out options by investors.
They also have no AMT worries, get long term capital gains taxation, have less restrictions on their stock and better access to investors who would like to buy a portion of their stock.
The reason why it's not as well known is they tend not to tell anyone, including their own employees, that they cashed out a little bit.