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The sole aim of this company was to extract money from investors...somehow, they managed to raise $500mn, $159mn of which went to the founders for selling secon
by boeingUH60 4y ago
The sole aim of this company was to extract money from investors...somehow, they managed to raise $500mn, $159mn of which went to the founders for selling secondary shares [1].
I really don't understand people like this. It's far easier to build a serially unprofitable business and cash out your shares...ask Adam Neumann, Travis Kalanick, and the GoPuff founders. Just don't lie to investors, pretend you're building something real at least.
1- https://www.wsj.com/articles/former-outcome-health-executives-found-guilty-of-fraud-912f9bb0 https://www.wsj.com/articles/former-outcome-health-executive...
- rchaud 4y agoThey went Ozy Media when they should have gone WeWork.
- pinkfairy10 4y agoIt’s easier to commit fraud than start a unicorn tech company. How can you not understand that?
- ghaff 4y agoBut you don't go to jail for failing to start a unicorn tech company so long as you don't do anything illegal.
- JeremyNT 4y agoHe did the "hard" part of this, which is getting investors. It didn't matter whether the business failed at that point. If he'd just failed without the deception he could have collected his golden parachute, then gone on to keep failing at new startups for an indefinite amount of time.
- throwway120385 4y agoIntellectual Ventures is a good example of this but in the hardware space. Products that are perpetually on the cusp of release are a good source of funding I guess.