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If the founders retain a majority, this is less than 4% of their stake — that percentage is more relevant in analyzing the confidence signalling and motivations than a superficially large "$21 million" figure.


Clearly you still don't understand. They didn't sell 4% of their stake. If they did that, it would be somewhat reasonable. What they got was a dividend. In other words a bonus.

And yes the figure is still "large" because it is 1/6th of their funding that goes to their pockets, rather than the company.


It would be completely reasonable if they sold equity to take money from the round.

Alternatively they could offer a retention bonus to everyone based on current salary.




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