As we hear all over the news that , x startup raised this much funding at so and so valuation , many startups acquire good customers , raise good amount of money , scale in a decent way , ofcourse not every startups becomes uniform but as the most of the founders' networth is bound to these startups in the form of equity so if the startup gets failed due to some reasons ,so founders also lose their net worth or they successfully make good amount of money by that time so they don't worry much
Please explain me this in a concise manner
See what basically happens is that if the founders do things like Ashneer Grover where the founder have their wealth stuck in those stocks and he can anytime sell those stocks and get his money without caring about the investors
So that is why generally what happens is that many investors give a certain condition before investing that you shouldn't hold individual stocks so that "Founder paisa lekar udd na jaye"
With the host of startups closing down, was curious to know what does founder net worth usually result in and how do they generally make money for them along the way. Few questions-
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