As it was in the beginning, is now, and ever shall be, world without end.
by metavalent
Paul Graham on the Venture Capital Squeeze - Will founders be able to get VC funding AND partially cash out? A response to a comment is made on the site:<blockquote>Greg Linden in the comments suggests that a partial payout would somehow make up for the opportunity costs incurred by the founders during the bootstrapping period. The common view is that these bootstrapping costs (both opportunity costs and hard cash invested in the business) is what makes up the Founders’ equity.</blockquote>While this is historically true, the all-or-nothing risks of founders in today’s society are so high that this historical metric is no longer adequate. The early cash out is absolutely required by the laws of pragmatic economics in order to bring the formula back into equilibrium.
tags: