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Reflecting on My Failure to Build a Billion-Dollar Company

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2101 points jamesjyu | 3 comments | 07 Feb 19 15:28 UTC | HN request time: 0.931s | source
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lquist ◴[07 Feb 19 18:28 UTC] No.19107190[source]▶
On the one hand I applaud KPCB for giving up their interest in a founder friendly way, but this also leaves a bad taste in my mouth and seems a bit “Heads I win, Tails you lose” from Sahil’s pov. The VC investment let him build a fully fledged product capable of breaking out. But it didn’t and he still got to keep the company without much liquidation preference. This is an example of a true VC subsidy.
replies(1): >>19108005 #
1. super-serial ◴[07 Feb 19 20:00 UTC] No.19108005[source]▶
I wonder if an entrepreneur with less connections and not a part of YC would get that $1 buyout deal. I would think the default would be ousting the founder and selling the assets. Then the founder would be left with nothing. They'd have no lifestyle business, even though they could have had one if they never took VC.
replies(1): >>19112872 #
2. mdonahoe ◴[08 Feb 19 10:04 UTC] No.19112872[source]▶
If he only did a series A, I doubt he gave up enough control to get ousted.
replies(1): >>19115104 #
3. jessaustin ◴[08 Feb 19 15:33 UTC] No.19115104[source]▶
Looking back, I’m glad we didn’t hit those numbers. If we doubled down, raised more money, and appeared in the headlines again, there was a very real possibility it would only lead to a more spectacular failure.

Hmmm, reading between the lines, you seem to have a point...