WeWork CEO Neumann’s $700 million cash-out says a lot about how the massive influx in venture capital has changed the market
|07/19/2019||Posted by BusinessMediaguide.Com under General World News||
- Traditionally, venture capitalists frowned on startup founders selling any of their personal stakes in their companies before the firms went public or were acquired.
- But it’s becoming more common for founders to cash in some of their stakes pre-IPO.
- WeWork CEO Adam Neumann, for example, has raised some $700 million over the last five years by selling off stakes in his company or using his stock to guarantee personal loans, The Wall Street Journal reported Thursday.
- The change in attitude about such moves is related to the big influx in late-stage capital to the venture industry, investors and analysts said.
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