4 ms·

It's not like anyone is forcing these people to sell the company. You have the option. If you're a whole-hearted entrepreneur, then don't sell. Otherwise, a

• jgarmon 15y ago
  The naive assumption here is that the sellout option is the entrepreneur's decision alone. If you've taken VC cash, you're answerable to a board of directors and a group of investors. If the money guys are getting cold feet, and want their cash out now, it's very hard (often impossible) to NOT sell. If you've raised an A round, the easiest place to get your B round is the original set of investors (not least because it can keep the number of board seats/turnover low). If the A round guys want an acquisition exit and you refuse, not only are you spiting your best option for B round funding, you now have to raise money in an environment when all the other VCs know you ignored the last round of VCs' desires. Good luck getting your B round in that scenario. Entrepreneurs may not want to be part of a talent acquisition, but often VCs do. If you're determined to never work for a big corporation you don't own, you better bootstrap forever and never take VC cash.