Re:Post YC Depression
by est31 on Wednesday March 04, 2020 @05:34AM
(#22482640)
Founders often have controlling shares in their companies. This means they control a $1B revenue company instead of a $1M one, can become CEO if they want, etc. CEO salary for a $1B revenue company is more than for a $1M revenue one.
Also, if you own 100% you are the only person who is worried that the company is doing well. As often said, with great power comes great responsibility and in this instance it means you are the only person responsible that your 100% owned company is doing well. You can't just hire a manager. $1M/year revenue won't attract any good managers. They are going for the $1B/year class of companies. If a company has multiple shareholders, it has multiple people who care about share value increases. Investors are usually well networked.
Also, if you own 100% you are the only person who is worried that the company is doing well. As often said, with great power comes great responsibility and in this instance it means you are the only person responsible that your 100% owned company is doing well. You can't just hire a manager. $1M/year revenue won't attract any good managers. They are going for the $1B/year class of companies. If a company has multiple shareholders, it has multiple people who care about share value increases. Investors are usually well networked.