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>Why would the investors invest in something where they wouldn’t get a large part of the returns? Why would you think the investors would get any less returns
by throwaway_law 7y ago
>Why would the investors invest in something where they wouldn’t get a large part of the returns?
Why would you think the investors would get any less returns if the entity (say uber) was driver owned?
They wouldn't everything remains the same, except instead of a concentration of ownership in a small group of founders, that same percentage of ownership would be distributed among a larger group of workers.
So the real question is why are investors so adverse to employee owned enterprises and invest in small groups of founders.
- ericd 7y ago>stop the madness of centralizing the wealth among founders and investors, and distribute it to the workers. This seemed to imply that the investors would take less of a stake. Are they adverse to funding employee owned enterprises? I've never looked into it. Maybe they think that companies with dictatorial management are more effective at competing? For the record, having been a founder, I agree that equity tends to be overly concentrated with the founders.