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I think VCs will be disappointed or worse if they learn this was the main plan. (Of course FU money is another thing and something many VCs approve of. Edit: s
by reitanqild 5y ago
I think VCs will be disappointed or worse if they learn this was the main plan.
(Of course FU money is another thing and something many VCs approve of. Edit: since it seems to me this is a rather uncommon term these days it refers to giving the founder the initial investment and then a healthy amount extra in payout so their decisions won't be clouded anymore with the fact that they wan't "their" money back. At least that is the theory.)
- HWR_14 5y agoOh, sorry. I didn't mean as an exit plan. I was thinking of the FU money concept. I think there's a similar benefit (from the VC's POV) to some a bit of lifestyle inflation and the ability for the founders to have enough cash to use cash to solve personal problems instead of spending their time. I'm thinking "toys" was a bad word. I'm thinking getting a reliable Tesla as a means of personal transportation, not a yacht.
- 3pt14159 5y agoThis is called "taking some off the table" and there is a place for it, but it is usually a small part of a bigger push to get the company to rocketing growth.