News for hackers. Stuff that matters.

A comment on Ask HN: Is it appropriate to ask a startup to let me see their cap table?. Parent comment

Re:Ask HN: Is it appropriate to ask a startup to let me see ... by samvher on Friday April 07, 2023 @03:48PM (#35486164)
Just to check if I follow - is this a red flag because these founders are then not properly incentivized, because their ownership is a sure thing? (Although I guess you could then still argue that the incentive is growing the value of their share.)
[ Parent | on HN ]
Re:Ask HN: Is it appropriate to ask a startup to let me see ... by e10jc on Friday April 07, 2023 @05:27PM (#35487187)
It’s a red flag because they could sell their shares and exit way too early. In my experience, said founders basically cashed out at the A round, while everyone else was left to try and grow the company with little to no leadership.
[ Parent | on HN ]