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I think that you are totally wrong about these founders in particular and what taking money off of the table revels about founders generally. Most founders are

I think that you are totally wrong about these founders in particular and what taking money off of the table revels about founders generally. Most founders are extremely protective of their startup. It's their baby, and their livelihood. They'll do anything to keep it alive. Most "poor"(<$5M in the bank) would prefer a 'safe' acquisition to gambling on being a world changer. A good accusation can change a persons life forever $10M verses $100M? Who cares? Either way it's a lifetime worth of fuck-you-money. But investors what entrepreneurs to "go big." So if an investor finds a company and team that they think has a chance of making it they will give the founders fuck-you-money. It says, "ok, your safe, nothing can hurt you. Now take the chance of building a company that can change the world!" When you see a founder take a big chunk of cash from an early round, you shouldn't think, "they don't believe in what they're doing." You should think, "These investors (who know these founders a lot better then I do) think that they are so awesome, and have such a high chance of doing something transformative, they are basically giving them enough money that they will never have to worry about money again."

vonklaus 12y ago
Well, maybe getting an early payout caused them to lose the hustle. They turned the engine off, handed the keys back to the investors and walked. It would have been harder to shut down the company if they saw 0 upside, and all their sweat equity evaporated.
- zaidf 12y ago
  You seem to suggest that shutting the company down was definitively a worse outcome for investors vs. keeping it going. It isn't that black and white. For example, if they kept the company going and spent the remaining millions and still failed(most common outcome), it is a worse outcome than shutting it down now and returning the millions.
  - vonklaus 12y ago
    To clarify, the outcome of any company is unknowable, as is the future of everything. When you take a look at the guys from airbnb trying to make rent selling cereal and renting out an air mattress, that's the hustle. I am just suggesting that, hypothtically, if these guys were that hungry they would do anything to save the company. I saw Byttow's interview with Kevin Rose, he seemed passionate and intelligent, I don't want to discont their work. I just think that there are some people that won't (or financially can't) quit until the repo guys carry out their office. The people with that drive have a high correlation with success.
    - girvo 12y ago
      They also have a high correlation with failure, burn-out and destroyed lives.
- tdaltonc 12y ago
  I have no doubt that there are people who are demotivated by fuck-you-money in the bank. I also have no doubt that there are people who have their ambition liberated by it. Hopefully a good investor can tell the difference before they write the check.

vonklaus 12y ago

Well, maybe getting an early payout caused them to lose the hustle. They turned the engine off, handed the keys back to the investors and walked. It would have been harder to shut down the company if they saw 0 upside, and all their sweat equity evaporated.

zaidf 12y ago
You seem to suggest that shutting the company down was definitively a worse outcome for investors vs. keeping it going. It isn't that black and white. For example, if they kept the company going and spent the remaining millions and still failed(most common outcome), it is a worse outcome than shutting it down now and returning the millions.
- vonklaus 12y ago
  To clarify, the outcome of any company is unknowable, as is the future of everything. When you take a look at the guys from airbnb trying to make rent selling cereal and renting out an air mattress, that's the hustle. I am just suggesting that, hypothtically, if these guys were that hungry they would do anything to save the company. I saw Byttow's interview with Kevin Rose, he seemed passionate and intelligent, I don't want to discont their work. I just think that there are some people that won't (or financially can't) quit until the repo guys carry out their office. The people with that drive have a high correlation with success.
  - girvo 12y ago
    They also have a high correlation with failure, burn-out and destroyed lives.
tdaltonc 12y ago
I have no doubt that there are people who are demotivated by fuck-you-money in the bank. I also have no doubt that there are people who have their ambition liberated by it. Hopefully a good investor can tell the difference before they write the check.