Jason Lemkin
๐ค SpeakerAppearances Over Time
Podcast Appearances
That's a great answer.
It's just part of the risk.
Now, I was going to come up with a whole bunch of other things, but Jason is exactly right.
You have to remember, this is a seed round.
And why combinator do this thing is that the number one cause of failure at the seed stage is, you know, founder incompatibility.
And this is just seed rounds with extra commas.
And they discover after a year, they don't want to be doing this and they want to go back to the big company.
Just treat it like a seed round.
There will be some version of the following clause that says, if more than X team members leave, then you have the ability to call for redemption and just basically wind the company down and say, you spent 20% of the money.
If you can't get an M&A outcome where you get a 1x, then you can wind the company up.
You give them $2 billion.
They spend $200 million.
You take another $200 million to bribe everyone to go along with it.
And you get $1.6 billion back.
And you say to yourself, that was a risk that didn't work.
I only lost $0.20 on the dollar.
I can recycle that money into the next OpenAI round.
Everything's fine.
That would be a far better outcome then.
We're going to commence the long and bloody march trying to fix this thing, trying to hire new people.