alt Hacker NewsWhy is it that so many decent companies ends up being sold to private equity? Is it a reality of the economics, do people get greedy, do people get burned out?
Private equity almost always ruins a company, normally the culture first and the product thereafter. I can't imagine the creators being completely ignorant or feeling good about that?
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isolli • today at 6:29 AM
Maybe, just maybe, founders sometimes need a way out. Maybe they've given enough of their life, they just want to cash in, and they decide to put up with the downsides (which they almost certainly know about).
Disclaimer: I have never founded a company, so I'm just guessing at what the motivations could be.
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It may be investors forcing a sale. A lot of 2005-2015 era venture funds have hit their default age limits and may force exits, even at a wash or loss for the investment, just to close out the fund.