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You have got to imagine that the founders [who had the largest stake] made out better with this investment. It's likely the case that a smaller slice of a bigge
by hemancuso 15y ago
You have got to imagine that the founders [who had the largest stake] made out better with this investment. It's likely the case that a smaller slice of a bigger $ pie > larger slice of smaller $ pie
The engineers would be in the same boat as the founders.
The insider VCs likely served to make the engineers richer. Facebook is likely the one who got screwed into overpaying.
- psb217 15y agoFacebook only gets screwed if their own valuation doesn't increase enough to match the amount "overpaid" in response to Instagram's acute "increased valuation" ploy. Given current market conditions, particularly in terms of fawning over Facebook, the negative effects of this ploy seem likely to be largely externalized, with the amount of burden borne by Facebook promising to be negligible. As usual in the trading game, the bulk of the burden will fall on the unanointed schmucks lacking the information to buy low and sell high.