VC Decries Airbnb’s Recent Funding for Founder Control and Cashout
1–10 of 163 posts
Re: VC Decries Airbnb’s Recent Funding for Founder Control and Cashout
#2This is a very interesting article! I do think that he makes a very good point that if you are already 90% vested, why be so concerned about dilution? I definitely think that, as founders, when we get liquidity we need to make sure the people that helped get us where we are get a slice as well.
After all, we aren't the only people that make a company succeed.
Re: VC Decries Airbnb’s Recent Funding for Founder Control and Cashout
#3The special one-time-dividend to vested early stockholders seemed a little fishy when I noticed in Groupon's S-1... but maybe it's just an efficient way to reward existing value without larger dilution/valuation.
If employees with unexercised but vested options were given a heads-up that such an unusual early dividend was coming – so that they too could choose to qualify – that might address much of Palihapitiya's concern about fairness.
Re: VC Decries Airbnb’s Recent Funding for Founder Control and Cashout
#4The special one-time-dividend to vested early stockholders seemed a little fishy when I noticed in Groupon's S-1... but maybe it's just an efficient way to reward existing value without larger dilution/valuation. If employees with unexercised but vested options were given a heads-up that such an unusual early dividend was coming – so that they too could choose to qualify – that might address much of Palihapitiya's co…
I'm probably wrong or misunderstanding the whole issue, but if it is true that new investors are simply paying early stockholders a special dividend, then wouldn't that make this a Ponzi Scheme?
Re: VC Decries Airbnb’s Recent Funding for Founder Control and Cashout
#5The special one-time-dividend to vested early stockholders seemed a little fishy when I noticed in Groupon's S-1... but maybe it's just an efficient way to reward existing value without larger dilution/valuation. If employees with unexercised but vested options were given a heads-up that such an unusual early dividend was coming – so that they too could choose to qualify – that might address much of Palihapitiya's co…
Not really. I am not a lawyer but it seems to me that is not the case.
Employee stock options are meant not to be exercised until they are saleable. When you can them early in a private company your capital is locked up in a dead asset yet you have to pay capital gains taxes. The dividend would have to be huge.
Further watch out for insider trading. The value of the stock when the option was struck has to price in the promised dividend.
Re: VC Decries Airbnb’s Recent Funding for Founder Control and Cashout
#6How uncommon are dividends like these happening within a VC-round?
Re: VC Decries Airbnb’s Recent Funding for Founder Control and Cashout
#7Perhaps a rethink is needed of bringing the public sentiment into the equation by making this communique open. I appreciate that it does shed more light into the strong dilution resistant finance. However, the round particulars are private and the fair play would go privately to the guys with it.
Seems to be a lot of this going around these days.
Re: VC Decries Airbnb’s Recent Funding for Founder Control and Cashout
#8The special one-time-dividend to vested early stockholders seemed a little fishy when I noticed in Groupon's S-1... but maybe it's just an efficient way to reward existing value without larger dilution/valuation. If employees with unexercised but vested options were given a heads-up that such an unusual early dividend was coming – so that they too could choose to qualify – that might address much of Palihapitiya's co…
I'm probably wrong or misunderstanding the whole issue, but if it is true that new investors are simply paying early stockholders a special dividend, then wouldn't that make this a Ponzi Scheme?
While we could argue back and forth about whether it technically is a Ponzi scheme, whether that definition fits or not, it's profoundly problematic. We already exist in a relatively volatile industry that has seen it's fair shares of bubbles and busts. We don't need to add another unethical and chaotic variable to the pile.
Re: VC Decries Airbnb’s Recent Funding for Founder Control and Cashout
#9I think the interesting question here is who leaked this email to allthingsd. If the VC really wanted to give the Airbnbs a heads up (as he makes it sound in the email ... take care, let's keep in touch, etc) then I don't think there was any necessity to leak this and I am quite sure the Airbnbs wouldn't want it out in the open either.
And then... the Groupon comparison kind of sticks in your mind, doesn't it? I don't know, I get the feeling there is more behind this ...
Re: VC Decries Airbnb’s Recent Funding for Founder Control and Cashout
#10[deleted]