"Facebook has almost finished raising $150 million in capital, in an extraordinary move by the company to buy out shares of hundreds of regular employees. Hundreds of the Palo Alto, Calif.s employees have now toiled at the company for more than two years, and many have worked three to five years. Increasingly, some have become restless, and would like to cash in on the huge value they've created."
Facebook raises $150 million more to cash out employees » VentureBeat
For more than TWO YEARS?! TWO YEARS?! TOILED?
Restless?
Cry me a fucking river!
Tell that to some family who ran their local Chevy dealer for the last 20 years who just got news this week that they're getting the ax.
They're the ones who deserve to be a little restless.
I'm sorry, but this is exactly what's wrong with this country and why we got here in this economic mess--people looking for a handout before actually creating any real value. Facebook has not made a single penny of actual profit. It has no exit in sight. They've capitalized themselves and grown to the point where no one is going to acquire them, and they can't go public without some actual cashflow.
And yet, after just a few years, their employees need to cash out? Really?
Did they not notice that not only is no one else hiring, but equity payouts are few and far between? Sure, a few companies got picked up along the way in the Web 2.0 M&A window, but it's not like everyone else in the Valley got fat payouts and they're the only ones without a Porsche in the drive.
And PS... Most startups don't even have an exit. Equity is UPSIDE. It's a risk you take, because you don't know if, when, and how much--and if you wanna see the payout, you stick around and see the company through to an exit.
This is like tips--where instead of tipping for good service, now you're just expected to lop 20% on top of your bill all the time and it's expected.
It's not like these people have been working for peanuts this whole time either. I'm sure Facebook is paying their people market rates, so the idea that they need to see their upside already--in this economy, and after just a few years--is astounding.
Right now, I'm working hard to make sure our company, Path 101, survives past the summer. My expectation is that it takes at least five if not seven or eight years to build a company. If anything good happens before that, it's gravy, but I'm in this for the long haul. If I can work at something I love doing for the next five or six years, I'd consider myself very lucky.
Trust me, I won't be looking for a cashout after two, especially if we're not making any profit yet.
And what does that investment memo look like? I'd like to hear that partnership discussion at the VC firm...
"We're going to need $150 million more in Facebook?"
"For what? To grow internationally? To scale? For bandwidth costs?"
"No... to keep these twentysomethings working for *two years straight* from whining."
And who are these Asian investors and where do I send my Powerpoint?