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I knew ppl who got funded and as part of the deal, pocketed a few $ million, no strings attached (I guess that's how much leverage startups had in getting fundi
by altdataseller 4y ago
I knew ppl who got funded and as part of the deal, pocketed a few $ million, no strings attached (I guess that's how much leverage startups had in getting funding). It really makes me angry because even if there's a downturn, they aren't negatively impacted. They made their $$$, and lost their investors money.
- weatherlite 4y agoThat usually happens for well established companies/unicorns. I don't think someone raising seed/A or even series B can just rake millions into his pocket when the company isn't even close to profitable. But maybe I'm just naive?
- altdataseller 4y ago1 of the cofounders of Buffer did that years ago. Got $1 million in his pocket at the Series A
- weatherlite 4y agoWow. Why the hell do contracts allow for this lol, that's crazy. Also - I think this is an American thing.
- flibble 4y agoThe strings attached were the equity they gave up in exchange for the deal.
- altdataseller 4y agoWhich probably will be worth $0
- heartbreak 4y agoSounds like that’s the deal the investors agreed to.