This article highlights a new trend in Silicon Valley startups--cashing-out founders, early investors, and early-stage employees in rounds of financing prior to an initial public offering. The article highlights instances of this happening (Groupon and Twitter, for example), and explains how this change in practice alters incentives for the parties who receive cash sooner than they otherwise would have.
- Summary by FizzLaw Team
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Who needs an IPO? Show me the cash-out!