Re:How Google bought Waze
by rokhayakebe on Thursday August 13, 2015 @06:53PM
(#10057685)
The part about dilution was interesting. I looked at several tech startup IPO filings and it "appeared" to me that most founders ended up with 4 to 7% in equity. Also in nearly all cases, there is one VC who owns more than 20% of the company.
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Pretty standard in my opinion. Depending on your negotiability, you're going to get diluted 10-40% in every round. Do that a few times, and you can see where one ends up :)
Better to have a little piece of a really big pie, than to have a really small pie all by yourself.
Kinda pathetic though, isn't it? A group of people devote their lives to a product, working round-the-clock for years, and then reap (relatively) tiny rewards compared to the money man.
Re:How Google bought Waze
by JoeAltmaier on Thursday August 13, 2015 @09:54PM
(#10058239)
Hey! You've just described the money-sucking machine that is Silicon Valley.
What money man are you referring to exactly? Most of the actual money in these situations comes from massive institutional funds where there is no individual man.
The fund, the firm, and the individuals who led investments. No?