Are Healthcare Startup Founders Doomed By Dilution?
I recently stumbled across a 2013 Business Insider article titled, “Why It’s Better To Sell A Startup for $20 Million Instead of $200 Million” and it got me thinking. In 2011, when Arianna Huffington and her two co-founders sold The Huffington Post, AOL paid a whopping $315 million after only 6 years of operations. I would’ve expected the namesake of the organization to have made a killing in the deal, however given significant equity dilution, Ariana took home only $18 million or 5.7% of the value despite the company using her last name.
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