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After having dealt with lots of employees, he somehow made his company a success and it was ready to be acquired. CFO told him to dilute employees. And he never
by xstartup 9y ago
After having dealt with lots of employees, he somehow made his company a success and it was ready to be acquired. CFO told him to dilute employees. And he never had a problem finding good employees the next time, so yea you can do it and get away.
- meric 9y agoI’ve had my shares diluted from $2000 to $50 a long time ago, but if it’s “void” after a dilution then I’d like to have the math explained to me...
- memmove33 9y agoWhat is the reason why they were diluted in your case? Was it "nefarious" (e.g. targeted specifically at you) or just a consequence of unfortunate circumstances (e.g. heavy downturn, aggressive liquidation preferences, ...)?
- meric 9y agoThe company ran out of latest round of funds without increasing its value, and took them best deal it can. In the years since it had diluted around that much, again. This is a public company, not a tech startup.
- memmove33 9y agoHow is it possible to "dilute employees" from a technical point of view? Most of the times, even early employees, VPs and founders have common stocks, so how can one legally dilute just some employees without screwing the other common holders? Genuinely curious.