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What, in general, would prevent a VC from buying-out the founder? If the VC aims for a bigger potential payout than the founder, wouldn't they want a bigger po
by pcrh 14y ago
What, in general, would prevent a VC from buying-out the founder? If the VC aims for a bigger potential payout than the founder, wouldn't they want a bigger portion of that payout?
- lifeisstillgood 14y agoPresumably the same thing that prevents them starting the start up in the first place. Which is either they aren't capable (call that the nasty hypothesis), or they know to spread their bets over many founders. VCs commonly do oust founders, rather than buy outs (presumably it's cheaper)