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Often founders don't get to choose when to sell. e.g.: Investors usually get vetos over certain big decisions, like selling the company, regardless of how ma
by robocat 3y ago
Often founders don't get to choose when to sell. e.g.:
Investors usually get vetos over certain big decisions, like selling the company, regardless of how many board seats they have.
And investors can force-feed money that founders don't want for a variety of reasons. Read articles by: https://siliconhillslawyer.com https://siliconhillslawyer.com
- computerdork 3y agoAh, can see that investors can force the company to shoot for the moon, instead of just trying to right-size the business and sell it. Very interesting!
- robocat 3y agoYeah: VC incentives do not match with founders incentives - share classes are just one obvious signal of that. Good article on that conflict: https://siliconhillslawyer.com/2019/02/18/relationships-and-power-startup-ecosystems/ https://siliconhillslawyer.com/2019/02/18/relationships-and-... > ~9% where valuable enough for investors to take profit Or aquihired. Best analysis I have seen of YC: https://jaredheyman.medium.com/on-the-life-and-death-of-y-combinator-startups-d58aa03421f0 https://jaredheyman.medium.com/on-the-life-and-death-of-y-co... Disappointingly YC hasn't provided any good analysis for founders or employees. YC doesn't try to align founders and investors incentives - Paul mostly reads like a Venture Capitalist to me (sell founders of their good intentions but don't actually structure incentives to align). I actually think that YC is a great deal but startups are naturally a frog and scorpion system. It is hard to find better options. Finding good information is difficult and YC don't help.