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How does it feel unfair to sell stock to investors? In the current scheme new shares are issued and everybody gets diluted, so the founders have less economic
by MCRed 11y ago
How does it feel unfair to sell stock to investors? In the current scheme new shares are issued and everybody gets diluted, so the founders have less economic interest (as does every other employee).
If the founders take some money off of the table, then they're just selling their shares directly--- and there's less dilution. (It's not the case that they're just pocketing some of the proceeds from the investment.)
In that case the employees will be diluted less than they would be if the same investment amount was made and the founders didn't sell any of their shares. So it's better for employees.
Ideally, though, I think all employees including founders, should be able to sell some of their vested shares in each round of funding. Maybe %10?