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His reported net worth was equity in his business. The idea of "cashing out" the entirety of your equity in a VC backed co as a founder is not exactly an optio
by tempsy 4y ago
His reported net worth was equity in his business.
The idea of "cashing out" the entirety of your equity in a VC backed co as a founder is not exactly an option unless you're acquired.
- NickC25 4y agoI get that - but my hunch is that if VC firms were able to invest the amount that they did, he probably had the ability to sell more of his stake in the company if he wanted to. Granted, with what we know now, that does fit the definition of securities fraud.
- tempsy 4y agoif you’re lucky you can do small secondaries but there’s no cashing out, quitting, and walking away to a beach somewhere after raising billions of dollars…it’s just not an option
- adrr 4y agoThey paid the WeWork founder $1.7B to step down. https://en.wikipedia.org/wiki/Adam_Neumann https://en.wikipedia.org/wiki/Adam_Neumann
- bluedevil2k 4y agoWe’re all missing the big gotcha here - if he tried to sell out, the buyer would have done some DD and found the fraud as quick as Binance did. Best to keep quiet about your crimes.