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>The negotiations allow founders and investors to arrive at an agreeable set of terms by which investors put money into the business. You're ignoring everybody
by frgtpsswrdlame 9y ago
>The negotiations allow founders and investors to arrive at an agreeable set of terms by which investors put money into the business.
You're ignoring everybody who's not a founder or investor. There are people with stakes in this process who aren't founders or investors who are important too you know.
>You have a very strange view of venture capital.
In today's climate I definitely do.
- vkou 9y ago> You're ignoring everybody who's not a founder or investor. There are people with stakes in this process who aren't founders or investors who are important too you know. You mean the employees? Sucks to be them.
- cal5k 9y agoWhy does it suck to be them? If all goes well their options will be worth something. If it doesn't they'll have no value - that's how equity works. If you want guaranteed, predictable outcomes, negotiate for a higher salary in lieu of equity or go work for a company that isn't on the VC rocket ship. The founders are also taking a huge risk by taking on a liquidation preference >1x... if everything doesn't go well they could be completely wiped out or substantially diluted, as was the case with Blue Apron.