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The real lesson is,and been for a while, if you do a start-up, do like Zuckerberg and The Google boys. If you want your company to stay your company, watch that
by NotPavlovsDog 5y ago
The real lesson is,and been for a while, if you do a start-up, do like Zuckerberg and The Google boys. If you want your company to stay your company, watch that vital stock and keep the majority votes.
Zuckerberg:
“So one of the things that I’ve been lucky about in building this company is ... I kind of have voting control of the company, and that’s something I focused on early on. And it was important because, without that, there were several points where I would’ve been fired. For sure, for sure,”
Source: The Verge
- mdavis6890 5y agoIn the vast majority of cases this will preclude you from getting investment money. Sure - some companies can get away with that, but not a lot of them.
- fshbbdssbbgdd 5y agoIt’s normal to give up, what, 10% a round? That means you can afford to give up voting rights on the first few rounds. If you have a strong enough trajectory at that point you may be in a position to make demands to keep more voting power.
- dcolkitt 5y agoCounterpoint: Other investors have as much incentive to maximize the value of the company as I do. Besides ego, why should I care if someone is brought in who can do a better job. I still get to keep all my shares, and don’t even have to show up to work anymore.
- azinman2 5y ago> I still get to keep all my shares That often isn’t the case. I personally know of situations where CEOs were pushed out and recapped to effectively little.
- NotPavlovsDog 5y agoZuck in the Verge article discussed how much pressure there was to sell to Yahoo for 1B. For an average start-up, it might be being pushed to sell for, say, someM when you could wait and chance on 10xsomeM if you had the votes.