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Why is the risk being taken by investors greater than the one being taken by employees and founders? If anything, employees are taking a greater risk because y
by AbstractH24 2y ago
Why is the risk being taken by investors greater than the one being taken by employees and founders?
If anything, employees are taking a greater risk because you can replace money far more easily than years of your life.
- epistasis 2y agoOne is risking money, one time, and the money is what could possibly get paid back. If you can find money that doesn't insist on preferred liquidation, good on you. But those with the money tend to have a lot of say on giving it away.
- mlhpdx 2y agoFor what it’s worth, which isn’t much, I see signs this precept is changing because of the huge amounts of investible capital fighting for opportunities as the thaw progresses. It’s not going to be a widespread change, though, most will stick with what they’ve known.
- nradov 2y agoThe level of risk is irrelevant. What matters in access to capital is negotiating power. This isn't a charity. If employees want lower risk then they can go work somewhere else.
- mlhpdx 2y agoLikewise, if investors want to invest (deploy capital) they will adapt. There is more balanced leverage recently.