This is the worst I have ever read from greedy a16z.
Why do investors need to be greedy? Startups went public in 4 years in 90s and 4-year stock option totally made sense. After the company goes public, retail investors are able to
enjoy some post-IPO growth.
Now in 2010s, VCs became greed with money they raised from Wall Street and enjoy the 95% of the growth of startup at the expense of employee's stock options and take it to IPO selling the shares at high-cost to retail investors.
In 90s, First 1-10 engineers used to get upto 20-25% of the company. Now I see college grads are fooled by startup founders for 1-2%. Thanks to greedy investors.
I heard Zenefits is going through a big dilution problem now as they are looking to dilute the company shares and there is zero incentive for employees to stay in Zenefits. a16z controls Zenefits as they may have around 300M in Zenefits and maybe this post is the result of their new dilution event.
Why do investors need to be greedy? Startups went public in 4 years in 90s and 4-year stock option totally made sense. After the company goes public, retail investors are able to enjoy some post-IPO growth.
Now in 2010s, VCs became greed with money they raised from Wall Street and enjoy the 95% of the growth of startup at the expense of employee's stock options and take it to IPO selling the shares at high-cost to retail investors.
In 90s, First 1-10 engineers used to get upto 20-25% of the company. Now I see college grads are fooled by startup founders for 1-2%. Thanks to greedy investors.
I heard Zenefits is going through a big dilution problem now as they are looking to dilute the company shares and there is zero incentive for employees to stay in Zenefits. a16z controls Zenefits as they may have around 300M in Zenefits and maybe this post is the result of their new dilution event.