A fast rise in valuation sharply reduces the equity a company gives away to hire senior executives. Listen
Ganesan said business velocity matters a great deal to VCs, partly because of this effect. A $200M company might give 2% to hire a senior exec, he said, while a company that quickly reaches $2B can give the same person $20M in RSUs, which he put at 0.1%.
“You quickly become a $2 billion company, you don't need to get, you're going to give RSUs and you give the same person $20 million”
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