If I had 500 million in paper valuation and could turn 10 million into real dollars, I would do it and so would you. I would have to be an idiot not to do it.
Not being able to sell shares in private companies is a standard practice. There are good reasons for that. The reason public market is heavily regulated is to prevent fraud.
The fact that large shareholders can sell shares in companies is also a standard practice. You might not like it but it's not capricious either. The founders created the company, the investors put money in it. They get better kind of shares than an employee because their contribution is materially different.
> I would do it and so would you. I would have to be an idiot not to do it.
It's smart. That doesn't mean it shouldn't be criticized. It's forcing employees and others to take risks (specifically an equity position that cannot be partially sold to hedge against company failure) that the founders are not willing to take themselves.
Often yes but in this case I don't think so. These guys are worth _billions_. It would be financially imprudent to not cash out a little bit purely for diversification and buying a nice house or two.
If you'rea a founder in a world where you can fundraise enormous sums from private markets, why deal with the headache of going public?
