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The negotiations allow founders and investors to arrive at an agreeable set of terms by which investors put money into the business.

You have a very strange view of venture capital.




>The negotiations allow founders and investors to arrive at an agreeable set of terms by which investors put money into the business.

You're ignoring everybody who's not a founder or investor. There are people with stakes in this process who aren't founders or investors who are important too you know.

>You have a very strange view of venture capital.

In today's climate I definitely do.


> You're ignoring everybody who's not a founder or investor. There are people with stakes in this process who aren't founders or investors who are important too you know.

You mean the employees? Sucks to be them.


Why does it suck to be them? If all goes well their options will be worth something. If it doesn't they'll have no value - that's how equity works. If you want guaranteed, predictable outcomes, negotiate for a higher salary in lieu of equity or go work for a company that isn't on the VC rocket ship.

The founders are also taking a huge risk by taking on a liquidation preference >1x... if everything doesn't go well they could be completely wiped out or substantially diluted, as was the case with Blue Apron.


'agreeable set of terms' that is to the detriment of small shareholders.




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