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This happens every single time. Founders that don't want to see this can't have their cake and eat it too. It just doesn't work like that.
by jethro_tell 7y ago
This happens every single time. Founders that don't want to see this can't have their cake and eat it too. It just doesn't work like that.
- btown 7y agoWell, if you have a reliably profitable business, https://en.wikipedia.org/wiki/Dividend_recapitalization https://en.wikipedia.org/wiki/Dividend_recapitalization and similar lesser-known options can allow founders to retain control while providing liquidity. You can't have your cake, eat it too, and have the cake be made out of air... but you can pick two out of three.
- jethro_tell 7y agoThis is true, but many(most?) of these companies aren't in that strong of a place yet. Red Hat might have been but a side effect of the investor driven rocket growth model is that even if you're setup to have a strong company, you often don't have the position to make these kind of deals.