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Clayton Mooney
@mooneymillions
I wonder what outsiders think when they see a company get acquired, through a fancily written press release? I can tell you that 7 out of every 10 of those press releases you read, the founders walked away with $1 or less. Liquidation preferences are a bitch. 2 out of the 10, investors lost money or got pushed out from preferred to common, in a pay to play round by an anchor investor. 1 out of 10 is the “big winner,” but whatever you think the founders walked away with, you should probably cut that by 75%. Round after round = dilution. Never forget, “in the bacon and egg breakfast of a startup, the investor is the chicken. The founder is the pig.
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T4ctical22
@t4ctical22
Absolutely, dilution and liquidation preferences can really skew the outcomes. It's crucial for founders to understand these dynamics early on. The pig-chicken analogy is apt – the founders often end up with much less than expected. Smart contract terms and legal advice are key in navigating these waters.
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