Many employees have no idea how a cap table works or even what it is. They don’t understand that a buyout for $X dollars doesn’t mean that all the shares are divided equally. VC’s have a good deal with liquidation preferences.
Sometimes an acquisition works out great but this generally when a company was going to go public anyways.
We hear about all the IPO’s that made 200 overnight millionaires. But we don’t hear about the vast majority that either fail, have a poor exit, or just sort flag in the wind.
Sometimes an acquisition works out great but this generally when a company was going to go public anyways.
We hear about all the IPO’s that made 200 overnight millionaires. But we don’t hear about the vast majority that either fail, have a poor exit, or just sort flag in the wind.