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SEC fines Zenefits and former CEO for misleading investors
21–30 of 74 posts
Re: SEC fines Zenefits and former CEO for misleading investors
#22It's interesting that I can't think of any of these megagrowth tech startups that have gone off without a hitch. Zenefits, Uber, Snapchat, etc. are all in some form of trouble or another, and yet these companies are supposed to be the shining success stories that all other tech startups aspire to.
It's interesting that I can't think of any of these megagrowth tech startups that have gone off without a hitch.
Doing anything in the real world is hard. Some military sayings come to mind:
"No battle plan survives contact with the enemy."
"Sometimes, a 90 percent solution now is better than a 100 percent solution later." (Meaning you could all be dead if you dick around looking for something too fussily perfect.)
"You got to break a few eggs to make an omelet." (This is a saying about training deaths. They happen. Get over it. It is worse to not train them or to make training too sissified and safe and not enough like actual battle conditions.)
Re: SEC fines Zenefits and former CEO for misleading investors
#23Zenefits paid a fine for misleading investors (with some contribution from the founder). The company is financed by investors, so in other words they indirectly paid the fine for being misled. Ironic?
Re: SEC fines Zenefits and former CEO for misleading investors
#24It's interesting that I can't think of any of these megagrowth tech startups that have gone off without a hitch. Zenefits, Uber, Snapchat, etc. are all in some form of trouble or another, and yet these companies are supposed to be the shining success stories that all other tech startups aspire to.
Trouble isn't inherently a problem, and aligning this with VCs model of exiting either through being acquired or IPO'ing dumps the risk off onto someone else at whatever point it is decided that is best (for the company and some of its shareholders).
Re: SEC fines Zenefits and former CEO for misleading investors
#25It's interesting that I can't think of any of these megagrowth tech startups that have gone off without a hitch. Zenefits, Uber, Snapchat, etc. are all in some form of trouble or another, and yet these companies are supposed to be the shining success stories that all other tech startups aspire to.
because it is a cost benefit analysis.
they received $583,000,000 and an amazing valuation by LYING. They would have received exactly $0 by not being so compelling.
they pay $1,000,000
they still get to be a unicorn success story that everyone aspires for. deal
Re: SEC fines Zenefits and former CEO for misleading investors
#26Earlier quoted context omitted.
...yet these companies are supposed to be the shining success stories that all other tech startups aspire to. reply A lot of people in this world, as you can see on most threads on this site, define "good" as "financially successful,” and care only about getting a piece of the action. In that regard, it doesn't matter if it's legal, quasi-legal, a shitty scam or any permutation (see ICO's) if you see yourself as smar…
I don't think that's really the case here, HN doesn't seem to have many kind words for the makers of sham ICOs. How you get rich matters - if it's from making a huge business that's generally helpful, people admire you much more.
> How you get rich matters
It really doesn't. There is a very narrow set of circumstances that would aversely affect your place in society based on how you earned it.
Just think about how often it actually comes up regarding the wealthier people you may know or have heard about. Your wealthier neighbor.
Odds are you never dug for all the civil litigation they encountered, or the relative morality behind each case or circumstance.
They are just wealthier and society will reward them for that in perpetuity with access to better housing, better schools, better healthcare, and even more capital. End of discussion.
Re: SEC fines Zenefits and former CEO for misleading investors
#27Zenefits paid a fine for misleading investors (with some contribution from the founder). The company is financed by investors, so in other words they indirectly paid the fine for being misled. Ironic?
That is sort of the joke about all securities litigation. Shareholders will often sue companies that experience price drops due to "misleading investors" and, as you mentioned, the fine or damages end up being paid for by the investors themselves.
Re: SEC fines Zenefits and former CEO for misleading investors
#28It's interesting that I can't think of any of these megagrowth tech startups that have gone off without a hitch. Zenefits, Uber, Snapchat, etc. are all in some form of trouble or another, and yet these companies are supposed to be the shining success stories that all other tech startups aspire to.
How about Slack ($5bn) and Stripe ($9bn)? That being said, when you get that big, of course there's problems. You have targets on your back, you're managing thousands of people, etc. Especially if you're entering into a market with regulations... someone is going to fight back.
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Re: SEC fines Zenefits and former CEO for misleading investors
#29It's interesting that I can't think of any of these megagrowth tech startups that have gone off without a hitch. Zenefits, Uber, Snapchat, etc. are all in some form of trouble or another, and yet these companies are supposed to be the shining success stories that all other tech startups aspire to.
Slack? Stripe? Instacart? Docker? Twitch? Mixpanel? Doordash? Gusto? Coinbase?
Re: SEC fines Zenefits and former CEO for misleading investors
#30Earlier quoted context omitted.
I don't think that's really the case here, HN doesn't seem to have many kind words for the makers of sham ICOs. How you get rich matters - if it's from making a huge business that's generally helpful, people admire you much more.
> How you get rich matters It really doesn't. There is a very narrow set of circumstances that would aversely affect your place in society based on how you earned it. Just think about how often it actually comes up regarding the wealthier people you may know or have heard about. Your wealthier neighbor. Odds are you never dug for all the civil litigation they encountered, or the relative morality behind each case or…
Even simpler, plenty of 9 figure tech folks sold companies that quickly got written off by their acquirers.