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In actuality how it works is that the price goes up 10x and you experience 10x dilution. So everything seems up and to the right and the founders are 10x but w
by saulpw 3y ago
In actuality how it works is that the price goes up 10x and you experience 10x dilution. So everything seems up and to the right and the founders are 10x but when it comes time to cash out you're lucky to get a small bonus.
- bradlys 3y agoMaybe in some cases but I often see founders getting diluted a lot as well. Many times when startups get acquired/whatever - founders will get next to nothing because the investors had liquidation preferences. The founders still go through with it though cause it allows you to start another company and raise rounds. If you become known as a founder who prioritizes himself over his investors - who is going to give you money…?