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Especially since Cloudflare went public back in 2019, at which point any investors cashed out. - Sincerely, a Google employee who has nothing to do with the in
by vitus 5y ago
Especially since Cloudflare went public back in 2019, at which point any investors cashed out.
- Sincerely,
a Google employee who has nothing to do with the investment branch of the company
- yumraj 5y ago> at which point any investors cashed out. Well, actually that is also not true. At IPO preferred stocks convert to common but the investors can keep their ownership, they can but don't have to cash out or can only partially cash out. Investors can also keep board seats in many (or most?) cases.
- jefftk 5y agoI don't know anything about this particular case, but it's very common for VCs to cash out at IPO or not long after. VCs identify good investments among early stage companies; they don't want to keep their money tied up in investments outside of their specialty.
- mbreese 5y agoIn this example, I don’t think it matters if Google Ventures kept their shares or not. So long as they are treated as any other stock holder, I don’t see an issue. If they still maintain a board seat, then there might be an issue, but I don’t see a problem with simply holding shares.