JamesPeterson
Joined 15 years ago
Joined 15 years ago
In FB's case however, Zuck still controls (through proxy) the majority of votes; Zuck cannot be ousted.
There are other problems with a non-performing stock too; employee morale may be (and is increasingly?) tightly related to the share options they own. If management is not performing well and costing their employees money (!) that can ruin morale.
This doesn't just involve Facebook; currently the market is pretty bullish on web companies. It can quickly turn bearish, restricting the capital that currently flows so free.
Have a look at Gust.com to see if anyone is in your area.
Look for funds' fees and tracking errors before choosing.
If you're CF+ and need capital, talk to your bank.
This later cost them a gazillion dollars after a court process, and the whole world realized they needed to watch their backs just that little more.
I'd recommend exchanging pre-existing IP with the company for your founding stock, otherwise nobody will want to go near you.
If the market understands your model, you may as well throw it into an index; all opportunity for such deals will be absorbed by the market if it knows of them.
Your aim is to be better than the market.
For a pre-alpha startup, think equity. Any investor will want their chance at a return which reflects the opportunity costs and risks of their investment.
Edit: stock makes plenty of sense for investment. The purchase of equity is the same as buying a stake of future cash flows, whether this is as growth or dividends. Note that responsible directorship applies.