63 karma · joined November 5, 2010
http://www.danshapiro.com/blog/2010/08/vc-insanity-economics...
How did Mark Zuckerberg maintain control of the board, whilst still receiving huge VC investments? So I imagine it something like, he owns majority of the board but not majority of the shares?
I still don't fully understand what a VC has to gain by eliminating the founders?
So as long as the board is owned by non-founders, a sale can be forced even though the founders disagree and want to continue operating ... even if the sale will leave the founders with nothing? ... that seems so diabolical!
Probably ignorance here, but if the company sold for less, say $4m are the founders now in debt for the remainder of the 5x agreement?
One of the most common things you here from successful "entrepreneurs" is that they have an overflow of ideas and not enough time to work on all of them.