I would be more impressed if he had already built a sustainable company to a point that the company is generating more cash than he knows what to do with, but he is putting $17M into his own pocket and give up 10% of the company such that he can continue to build and morph it into a $1.7B company (10X again). Reading the article, it was not clear why he did it except to say that he now has $17M in the company's bank. It is even less clear why he brags about it. My own past experience is that whenever I boasted that I was the smart parrot who swallowed a fat mouse, I always ended up having to deal with indigestion. I think he is a great entrepreneur but I am curious.
Sorry it was not clear in the article, but here's the basic decision:
1. Have a large percentage of a modestly-sized pie
2. Have a smaller piece of a very large pie
Of course, there's always the "large percentage of large pie" option, but that seems to be pretty rare.
I've done Option #1 already and wanted to take a shot at Option #2. It's really early in the process, but there's enough reason to be hopeful.
Apologies if the article came off as boastful. I didn't know how to say it any other way without compromising truthfulness and making my larger point -- i.e. the VC game is a tough game unless you've got some leverage, and most entrepreneurs are better off working on the business in the early stages.
Dharmesh - thanks for the additional comment. I was not trying to be disparaging. Congratulation and look forwarding to seeing your continual success. High tide raised all boats. Good news for one is great news for all.
