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Practically speaking, when getting stocks/ stock options in startup, you have to trust the integrity of the founders to the point not only for them to do the ri
by NhanH 3y ago
Practically speaking, when getting stocks/ stock options in startup, you have to trust the integrity of the founders to the point not only for them to do the right things, but to fight for it. Preferred stocks (which VC gets) + dilution means there are a lot of ways to screw over common stocks, and at time when liquidation (that isn’t IPO) happens, a lot of lawyers will have the jobs of minimizing your stake.
Which is to say that crowdfunding stock is a baaaaaaaaad idea. You are faceless to the founders, hard to see a scenario when things can go right.
- iambateman 3y agoFor sure. Meanwhile this latest round raised $12M from 5,600 investors in a couple days. So the management team is getting a massive signal that “this is good.”