Top talent often leaves startups right before IPO. Founders selling large stakes beforehand is a red flag. At Google and Facebook, employees stayed because the IPO upside was huge and they trusted management to build what came next.
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The article also highlight how fragile the final stages of a startup can be. Yeah, what have been some of the warning signs you look for in these almost exited companies or later stage companies in general that suggest that there's a little bit of talent attrition brewing and how detrimental or impactful it can be?
I was interested to see just how much of the company the core we founders sold it before the ipo. I thought that was pretty irregular. I think the other interesting thing is in Silicon Valley that is very gossipy. So if it's a value based company with lots of employees you get a sense from people. I will say this, my friends who were at Google really did feel like there was a lot of upside on the other end of the ipo. So most of them a made so much money in the IPO or shortly after that there wasn't this crushing pressure to leave. But a lot of them also felt like Google had a lot of room to run. And my friends at Facebook it was similar. They had a lot of confidence in management's ability to find the next thing and.