Well, what was all that junk about liquidation preferences? That seemed to be insinuating the cash out deal could have been bad.
But the bigger point is that stuff isn't VCs hating entrepreneurs. If that rumor is true, it's just them doing exactly what Tony expected them to (or at least realized they would strongly consider) when he took the money.
You could similarly say Tony hates VCs because he didn't want to sell and give Sequoia a huge 5-10x, but that would be equally untrue.
Fair point. Perhaps the title would have been better as "VCs don't care about you as much as you want them to"?
The junk about liquidation preferences will have to serve for a later post. Liq pref is a device of which I am not a huge fan, having been on both sides of deals. I think they create really bad incentives, and when they are not understood, they are accepted by entrepreneurs well before the understand the implications of them.
Nonetheless, it's just VCs doing what's in their best interest. Hsieh, if he wants to continue on independently (which is still only rumor) only wants to do so because he feels it's in his best interest.
Why is the entrepreneur acting in his best interest correct, and the VC doing so wrong?
But the bigger point is that stuff isn't VCs hating entrepreneurs. If that rumor is true, it's just them doing exactly what Tony expected them to (or at least realized they would strongly consider) when he took the money.
You could similarly say Tony hates VCs because he didn't want to sell and give Sequoia a huge 5-10x, but that would be equally untrue.