Re:Hotshot Tech Founders Face a Dilemma: Lie Low or Live Large
by wpietri on Tuesday November 21, 2017 @10:35PM
(#15754042)
> What I'm actually saying is that SV is NOT different than anywhere else.
And I'm saying you're wrong. SV is different in the extent to which people pursue joint success rewarded by equity. (Go look at the AngelList job listings versus job listings anywhere else if you don't believe me.) It is also different in the extent of its economic success. This is not coincidental, and neither is the SV bias against ostentatious displays of wealth.
> what this has to do with a majority owner not being able to spend proceeds because there exists a minority owner
Because in the cases mentioned a founder (who is often not the majority owner by the time you get to later rounds) is cashing out ahead of everybody else. It's not like the employees and investors are getting buckets of cash. Just high-living founders.
Especially when the company is not even profitable, this sends a terrible signal. If someone has built a profitable company and rewarded investors and employees proportionally to how they've helped the founder, that's one thing. But when the founder is just pocketing cash that could be instead used to help the company succeed, that's different. It makes it very clear that the founder is looking out for himself first.
And I'm saying you're wrong. SV is different in the extent to which people pursue joint success rewarded by equity. (Go look at the AngelList job listings versus job listings anywhere else if you don't believe me.) It is also different in the extent of its economic success. This is not coincidental, and neither is the SV bias against ostentatious displays of wealth.
> what this has to do with a majority owner not being able to spend proceeds because there exists a minority owner
Because in the cases mentioned a founder (who is often not the majority owner by the time you get to later rounds) is cashing out ahead of everybody else. It's not like the employees and investors are getting buckets of cash. Just high-living founders.
Especially when the company is not even profitable, this sends a terrible signal. If someone has built a profitable company and rewarded investors and employees proportionally to how they've helped the founder, that's one thing. But when the founder is just pocketing cash that could be instead used to help the company succeed, that's different. It makes it very clear that the founder is looking out for himself first.