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So if I'm reading this correctly, the VC makes $27m and the original founders and team who worked an entire year on the project make $0. Is this correct? There
by antr 14y ago
So if I'm reading this correctly, the VC makes $27m and the original founders and team who worked an entire year on the project make $0. Is this correct?
There is more than one takeaway in this story.
- jblow 14y agoYeah, I was mildly sympathetic until it got to the part where they said in passing "oh, unfortunately, we just sort of liquidated the company."
- eridius 14y agoI doubt you're reading that correctly.
- wpietri 14y agoHow do you get that? By my estimate (http://news.ycombinator.com/item?id=4879046 http://news.ycombinator.com/item?id=4879046), they should have seen a reasonable payout. As was explained in the blog post, TechForward sold all the company's assets except the lawsuit. So the original shareholdings should all be in place, minus whatever additional equity they had to sell to the investors to get the small amount of additional money needed for the lawsuit.
- harryh 14y agoYou are almost certainly not reading this correctly.
- tbrooks 14y agoYou're forgetting the legal cost AND the risk of not getting paid the VC took.