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Without focusing on the details, I note the #1 issue here is failure to create a profitable company. Which strikes me as so common an outcome that it can't be called a unicorn.

And not getting anything after you build an unprofitable company is also very common, if not the most common outcome.




Consider the same story, but the ending is "The company was squeaking out a $1M/year profit, but a buyout offer came for $240M and the investors took it so they could cash out."

As an individual, if I could make a business with consistent $200k-$500k/year profit (as the sole shareholder), that'd be great for me. It'd be better than being an employee. But that would totally be an unsuitable business for VC.




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