Founder liquidity is wrong -- and not because employees don't get the same deal.
It's wrong because it is NOT uncommon for a founder to take chips off the table sometimes enriching themselves to the tune of millions only for the startup to then "fail" -- either go bankrupt, sell for peanuts, or sell for only a modest multiple.
You're not done until you're done. But founder liquidity has now become a path to getting rich when the outcome of the company is still unknown and up in the air. If venture backed founders don't want that risk, they should start bootstrapped companies.
At a minimum, there should be a cap on it (not % but $), and yes, it should be extended to early employees too.
It's wrong because it is NOT uncommon for a founder to take chips off the table sometimes enriching themselves to the tune of millions only for the startup to then "fail" -- either go bankrupt, sell for peanuts, or sell for only a modest multiple.
You're not done until you're done. But founder liquidity has now become a path to getting rich when the outcome of the company is still unknown and up in the air. If venture backed founders don't want that risk, they should start bootstrapped companies.
At a minimum, there should be a cap on it (not % but $), and yes, it should be extended to early employees too.