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Founders and investors have favorable terms -- they can take money off the table in the former case, and have liquidation preferences in the latter. So their s
by in_cahoots 10y ago
Founders and investors have favorable terms -- they can take money off the table in the former case, and have liquidation preferences in the latter. So their stock has non-zero value, though it may not be as much as the paper valuation suggests.
- khazhou 10y agoGreat perspective. It's not that equity itself is zero value. Otherwise, how would founders be able to afford MacLarens? It's employee equity that should be thought of as very low (or zero) value.