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Why does Google/Facebook pay the investor anything at all? If they have no interest in the assets, then they also have the option of just sending over a big e
by jcampbell1 15y ago
Why does Google/Facebook pay the investor anything at all? If they have no interest in the assets, then they also have the option of just sending over a big envelope of job offers to the founders and having the founders distribute it to the team. The investor's position is pretty weak. Everyone knows it, and the Google's and Facebook's are just reminding the founders what is true.
- cluda01 15y agoProbably because it's cheaper than defending yourself against a never ending stream of lawsuits (baseless or not) that would inevitably arise from founders and teams all leaving to one company en masse.
- deleted 15y ago[deleted]
- mjwalshe 15y agoDont think a suit to stop people "playing their trade" is going to work esp with the current "No Poach" lawsuit going around. Sounds like the VC's are finding that laissez faire industrial relations a bitch when in some rare ocasions it favours the employee :-)
- deleted 15y ago[deleted]
- jcampbell1 15y agoThis is a non-issue because the acquiring company can offer the same or better terms with guaranteed bonuses or restricted stock to the founders and still screw the investors.
- winterchil 15y agoThe founders think the company is valuable, they're usually on the board and have both a fiduciary and, hopefully, personal sense of duty to their company.
- bradgessler 15y agoBecause the investor really did take some risk and probably has a board position of sorts. Keep all parties wheels greased and things happen faster.