Secret aside, if you think "Founders took money off the table and then company crashed!" is a WTF, let me explain the deal VCs get.
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Replying to @patio11
VCs, like hedge funds, charge a management fee and a carry, often described as "two and twenty" due to cartelesque pricing decisions.
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Replying to @patio11
The management fee -- traditionally 2% -- is a yearly charge based on the fund's size. VCs generally get it regardless of fund performance.
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Replying to @patio11
Every professionally funded startup in history, including the ones which flamed out ingloriously after showing early promise, generates fees
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Replying to @patio11
Management fees are negotiated between sophisticated adults who understand the risks. Only new thing about cashouts is founder now at table.
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Replying to @sousoneca
@sousoneca I still comment rather frequently on HN, but try to avoid "hijacking" conversations there to make tangential points.1 reply 0 retweets 1 like
@sousoneca Twitter fills void between "I will stake a 8,000 word essay through this topic's heart" and "Barely worth a passing remark."
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