6 ms·

> You take a $1M investment, create a product and are aquired for $50M that is a huge "win", if we consider that "take $41M in investment" as a win, it may exp

• ChuckMcM 15y ago
  I'm not sure I follow you Vlad. If the senior execs have stock and leave, and it becomes worthless they lose. If the senior execs got part of that $41M funding round and left with it, then that's at least unethical. I don't think that was the case.[1] So being able to raise $41M is a tremendous vote of confidence and it brings with it really high expectations. [1] Anytime management pockets some of the funding round it gets a lot of press. See the GroupOn later rounds. There was also another startup reported here where the founders chose to take a 'liquidity event' as part of the funding and were roundly criticized, but I can't find it now.
  • VladRussian 15y ago
    >If the senior execs have stock and leave, and it becomes worthless they lose. it doesn't necessary become worthless. It is just may be not liquid [enough], ie. may be sold only back to company or the other owners. The valuation it may be sold back at may be of Skype-type, ie. no profit, or at the current valuation.