So… according to Crunchbase the entire amount of funding poured into this startup was $310M.
I assume the founders don’t get anything out of this sale?
I assume the founders don’t get anything out of this sale?
Why wouldn't they? They start by owning 100% of the company. They sell a % to investors - say, 50% for $300M, which is put into the company.
That still leaves them with 50% ownership. Selling the company - or their stake in it - for $190M will still mean they get half of that. On top of other things, like continued employment by the new owner and other enticements for them to either keep working or leave.
Disclaimer: this is armchair logic from someone who doesn't know how this works and lives half a world away.
They almost certainly won’t get anything.
> ... an unannounced incestuous funding round that had preferred equity and liquidation preferences, which was mostly the founder’s money.
Are you actually attempting to answer my question, or are you saying something unrelated?
Labor is compensated peanuts in comparison to capital. Neither is a charity, just that employees are materially worse off in these cases.