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A comment on Silicon Valley's best kept secret: Founder liquidity. Parent comment

Re:Silicon Valley's best kept secret: Founder liquidity by yuliyp on Wednesday June 12, 2024 @01:31PM (#40660717)
I mean it effectively means that the amount of cash going into the business is less than it otherwise would have been. The company wanted $5M of cash. With the owner selling $500k worth of shares it means they had to find $5.5M to be invested.

The only reason it happens is that the founder is negotiating both on behalf of the business and a bit for themselves.

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Re:Silicon Valley's best kept secret: Founder liquidity by ishan0304__ on Wednesday June 12, 2024 @05:35PM (#40663412)
I mean it basically means that the founder is not some dude in early 20s who can crash on a couch and work off coffee shops, they r going thru life as well and they r the one's who drove success so they rightfully expect a piece of that success
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