Most current founders now go to VCs rather than an have employee owned model because VCs wouldn't be happy with employees owning the size of the pie. The changes they would want aren't in line with their goals.
VCs would want founders to restructure the company and would not invest for future rounds for Series A, B, C, etc, (unlikely to happen since employees own the company) or tell founders to dilute employee owned shares for funding (also unlikely), employees would rather make more self-fund the company with profits than go to VCs for funding.
What you say makes sense for the kind of business that wants to scale quickly to try and build a moat and dominate a given market (that is, before it frequently goes downhill once the investors and founders have exited and the cheap money ends).
On the other hand, it doesn't seem like the best move for some product that solves a very specific problem for a very specific group of clients. Why would such a product necessarily even need multiple rounds of funding to be profitable?
colesantiago|1 year ago
VCs would want founders to restructure the company and would not invest for future rounds for Series A, B, C, etc, (unlikely to happen since employees own the company) or tell founders to dilute employee owned shares for funding (also unlikely), employees would rather make more self-fund the company with profits than go to VCs for funding.
VieEnCode|1 year ago
On the other hand, it doesn't seem like the best move for some product that solves a very specific problem for a very specific group of clients. Why would such a product necessarily even need multiple rounds of funding to be profitable?