Comment by mcdow
From the comments here it sounds like most people think the amount Anthropic paid for the company was probably not much more than the VC funding which Bun raised.
How would the payout split work? It wouldn’t seem fair to the investors if the founder profited X million while the investors get their original money returned. I understand VC has the expectation that 99 out of 100 of investments will net them no money. But what happens in the cases where money is made, it just isn’t profitable for the VC firm.
What’s to stop everyone from doing this? Besides integrity, why shouldn’t every founder just cash out when the payout is life-changing?
Is there usually some clause in the agreements like “if you do not return X% profit, the founder forfeits his or her equity back to the shareholders”?
All VC's have preferred shares, meaning in case of liquation like now, they get their investment back, and then the remainder gets shared.
Additionally, depending on round, they also have multiples, like 2x meaning they get at least 2x their investment before anyone else gets anything