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This is an interesting and unusual (but not unprecedented) move that actually aligns interests. 99% of founders have a goal (it may not be the primary or secon
by mblevin 12y ago
This is an interesting and unusual (but not unprecedented) move that actually aligns interests.
99% of founders have a goal (it may not be the primary or secondary, but trust me it's there) to be "F you" rich. Maybe 99.9%.
This move doesn't make either of the founders remotely close to that. If the founders checked out now, they wouldn't be able to retire - they certainly won't worry about paying for college for their kids, but they're sipping pina coladas on the beach either.
Taking "just enough" money off the table de-risks the whole operation for everybody. The risks in a startup this size are
a) Founder fallout / burnout
b) Running out of enough runway to really scale the biz and make the right long-term product investments (being cash-flow positive doesn't mean you can do this - plenty of breakeven startups out there just treading water who are one bad product cycle or market shift away from biting it)
c) Inability to hire and retain the right people
This helps tackle all three.
Win-win for everyone.