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A dollar valuation is bollocks, yes - but a percentage stake of a company valued at 5-10m of (I.e. small-fry) when it gets sold-out to Cisco / Apple / Facebook
by DaiPlusPlus 7y ago
A dollar valuation is bollocks, yes - but a percentage stake of a company valued at 5-10m of (I.e. small-fry) when it gets sold-out to Cisco / Apple / Facebook is not.
- justapassenger 7y agoPercentage stake is also a bollock. Liquidation preference makes selling out good business for VCs. Sometimes founders if they're smart. And engineers are lucky to get anything at all. I highly recommend anyone working in startup world to learn more about how it works in details, and understand how their companies deal with it. You can own 1% of company that's sold for $100M and get $0. And it's all perfectly legal.