LivingSocial: Employees' and Founders' Common Stock Now Worthless

Re:LivingSocial: Employees' and Founders' Common Stock Now W... by confluence on Thursday February 21, 2013 @01:26PM (#5259074)

1. VC portfolio exits.

2. Dilution, liquidation preferences and different stock class rights do indeed push it towards zero.

3. No I'm not. I'm merely indicating that valuations are bogus.

6. Implicit force is still force - just because you haven't mandated it doesn't mean it's not enforced via threat of firing and peer pressure dynamics.

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Re:LivingSocial: Employees' and Founders' Common Stock Now W... by drusenko on Thursday February 21, 2013 @09:21PM (#5262118)

Since there's a lot of assertion and not much data here, let's bring some in. After some quick research, this Quora article seemed to have some useful statistics: http://www.quora.com/What-is-the-truth-behind-9-out-of-10-st...

In short, 13% of VC-backed startups exit for over $10M, 5% exit for over $50M, and 2% exit for over $100M, which is what I'd call a meaningful exit for all parties involved.

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