> You, the founder, keep a % of the company throughout this time, but you'd only see it translate to real money in the case of an acquisition/IPO/sell off If E

> You, the founder, keep a % of the company throughout this time, but you'd only see it translate to real money in the case of an acquisition/IPO/sell off If Evan Spiegel and Bobby Murphy weren't taking $10 million+ off the table during funding rounds they'd probably be far less likely to turn down a $3 billion offer. It is fairly common for founders to trade personal stock for cash during a funding round. Perhaps you mean during initial funding? It is absolutely possible - and common - for founders to take money of the table during secondary funding rounds.