On: All the wrong reasons for Stack Overflow's VC chas...

[anamax]

> It has been done, but it's rare, and it's a sign that a founder doesn't believe in the business prospects that they're asking everybody else to invest in.

Fred Wilson (avc.com) disagrees. He thinks that letting founders take money off the table is a great idea in several circumstances.

You don't want founders looking for/taking an exit too soon.

[portman → anamax]

Fred is one of the many believers in the so-called "secondary" raise, but NOT for Series A.

http://www.avc.com/a_vc/2010/01/the-tug-of-war-between-ma-an...

[Sukotto → anamax]

I found PG's essay on this pretty interesting too: http://paulgraham.com/vcsqueeze.html