4 ms·
A very commonly heard refrain in the Valley is some variant of: "Would you rather own 100% of a company worth $1 million or 40% of a company worth $200 million?
by patio11 12y ago
A very commonly heard refrain in the Valley is some variant of: "Would you rather own 100% of a company worth $1 million or 40% of a company worth $200 million?"
Money is used to purchase acceleration. It's not totally crazy, although it implies very different trade offs as compared to running one's own business without investors.
- danieltillett 12y agoThe problem here is risk is ignored. If I were to rephrase the question as "Would you rather own 100% of a company with a 50% chance of success or 40% of $200 million company with a 1% of success?" then the answer we get is very different.
- steveklabnik 12y agoThis is true. One can draw their own conclusions about those who say such things, and why the risk element is elided when they say it...