What about tech "founders" being forced to sell equity in later funding...

Jan 19, 2021
12:46:54pm

Richard McCoy Jr. Walk-on

Rounds to make sure there is alignment with investors? Do most tech employees realized that Series C and later rounds include small but sizable exits for founders?

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Richard McCoy Jr.

Bio page: Richard McCoy Jr.
Joined: Dec 16, 2020
Last login: Mar 15, 2022
Total posts: 1,647 (33 FO)

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Messages

Author

Time

Random thought on tech companies (probably true of all, but I only know tech):

macdizzle

1/19/21 12:33pm

This is all true. I've also learned that there are different classes of stock in privately held firms.

El Jefe

1/19/21 12:36pm

Yep, been wiped out multiple times in acquisitions where top brass still got paid

BeyondTheMark

1/19/21 12:41pm

Same in bonuses- multiple times the cattle didn't get bonuses due to not hitting milestones (company ones)

BeyondTheMark

1/19/21 12:43pm

Ah yes, the dreaded 'liquidation waterfall'

macdizzle

1/19/21 12:42pm

What about tech "founders" being forced to sell equity in later funding...

Richard McCoy Jr.

1/19/21 12:46pm

They don't have a clue. I look at Divvy's recent round and MX's recent round.

macdizzle

1/19/21 12:52pm

I don’t mean to sound insensitive, but your examples don’t sound surprising.

BringYourUltimate

1/19/21 12:55pm

I TOTALLY agree. I'm not disparaging it at all. I'm simply saying that 80% of

macdizzle

1/19/21 12:56pm

Do you think that many employees are that far off?

BringYourUltimate

1/19/21 1:52pm

In terms of their perception of what execs make you mean? Oh yes absolutely.

macdizzle

1/19/21 2:12pm

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