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> people who are so sure that their idea will someday be worth billions that they do not want to pay cash I think the opposite is more likely true. If you real
by juliangregorian 12y ago
> people who are so sure that their idea will someday be worth billions that they do not want to pay cash
I think the opposite is more likely true. If you really believed your idea was worth billions you would want to keep all that equity for yourself. I don't consider equity-only offers worth the paper they're printed on.
- vidarh 12y agoI've more than once encountered people who genuinely seem convinced that they are "billionaires-in-waiting" and that everything in between is just a few formalities, and that even if they were to give away a sizeable chunk of equity they'll still be swimming in cash, and so giving away equity is no big deal. In that kind of situation there is a subset of people that can hardly wait to start spending the money on their lifestyle, and conversely would rather not spend their cash on their business if they can spend equity instead. In my experience these are the same type of people who go into a casino expecting to win because they feel lucky today. At the same time, they can be so blinkered that they don't get it when someone else don't see it as an amazing chance when offered equity over cash, often at inflated valuations. Sometimes people take personal offence, because rejecting their equity offer means rejecting an idea they're extremely deeply emotionally invested in.