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I have read few articles that made me as angry as this one did in recent memory. Let me get this straight -- investors are complaining that entrepreneurs are o
by vessenes 16y ago
I have read few articles that made me as angry as this one did in recent memory.
Let me get this straight -- investors are complaining that entrepreneurs are outnegotiating them on liquidity terms? And their concern is that the entrepreneurs won't keep doubling down to get to a billion dollars once they have some reasonable fraction of the investor's personal net worth?
It takes the arrogance of the very rich and highly dominant to complain that they're unable to keep their top employees poor enough to stay motivated. To also kvetch that they're getting outmaneuvered at what, fundamentally is one of their only advertised skills, negotiating terms-sheets, would be laughable if the tone of the article wasn't so earnest.
That said, davidu raises good points here about company alignment; it is hard to watch your boss get rich if you don't. You'll probably end up hating them. One nice thing about an 'exit' is that your boss will leave, so you can hate him or her remotely. I'd say the solution is fair incentives up and down the chain in the company, a circumspect attitude to spending, and just keeping quiet about how the deals go.
- ojbyrne 16y agoThat last paragraph definitely resonates with me. Especially if your bosses's names were just above yours on the Series A, and one of them now is an angel investor with some top tier investments, and the other bought himself a Tesla and a multi-million dollar home in Mill Valley. I try not to hate...
- sokoloff 16y agoI don't get a sense that investors are complaining about being outnegotiated. Investors that I respect that are quoted in that article are basically saying, "We didn't like the terms the founders were offering, so we passed, and they went and got terms to their liking from someone else." I didn't see any particularly complaining evident, just a disagreement/difference of opinion on whether a proposed deal made sense to them or not. It didn't, so they didn't.