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Isn't a set-price, as opposed to a discount, the simplest way to align everyone's interests immediately and cheaply?
by syedkarim 13y ago
Isn't a set-price, as opposed to a discount, the simplest way to align everyone's interests immediately and cheaply?
- rexreed 13y agoSure, but that means setting a valuation. Price = valuation.
- syedkarim 13y agoPrecisely. But there's nothing inherently wrong with setting a valuation. At the earliest stages, it's all very arbitrary anyway. There's no reason not to reward the earliest investors for taking, by far, the greatest risk. A 10%-30% discount does not seem commensurate to the degree of de-risking.