4 ms·
What reason would Airbnb have to do this?
by dopamean 11y ago
What reason would Airbnb have to do this?
- staunch 11y agoWhy not? The financial terms could be roughly identical. Having your users be your stockholders seems like a huge advantage in a lot of ways.
- foobarqux 11y ago> The financial terms could be roughly identical. In what way would giving away shares to employees be the same as keeping them as an asset of the company?
- staunch 11y agoThey're already going to sell the equity to someone. Airbnb could sell equity to its users instead of private equity groups.
- jdoliner 11y agoCompanies generally expect to get a lot more than just money from their early investors. This is definitely a nifty idea for giving people an incentive to participate in a nascent 2 sided market. However it's not quite a no brainer as you're describing, there are trade offs here.
- deleted 11y ago[deleted]
- baudehlo 11y agoMaybe it's just the right thing to do. When VA Linux IPO'd they let everyone who had contributed in some way to their open source distribution into the family and friends plan. I was one of them and managed to re-pay my mum for lending me the deposit on my mortgage. Note that I don't think you can classify it as a bad example just because LNUX was a spectacular failure after the IPO. The F&F situation had nothing to do with their failure. Sometimes it's just good to help the people who helped you build a business.
- deleted 11y ago[deleted]