Hacker News new | ask | show | jobs
by drinkzima 4226 days ago
I don't mean this in a negative way, but how does a CEO retain control through a fall from $1B+ to $15M? Isn't that endemic of significant mismanagement, at least in expectations?
1 comments

IMHO, it can go both ways. It can definitely be mismanagement, but it can also be mismanagement by the VCs who have outbid each other on a "hot" company. To a large extent it is the CEOs role to maximise capital raised while reducing shareholder dilution.

I don't know the specifics of Fab, but from the outside it can be anyones responsibility. Fab was valued at $1bn because investors paid that valuation, so I'd be curious to see how Fab was pitched at the investment committee in each of the VC shops during the C + D rounds: Andreessen Horowitz, Atomico...