No market fundamentalist here. My point is that this is one case where the market seems functional. Investors who make these deals will lose, if they're so bad. So what do their competitors have to complain about?
Edit: Your tone seems a bit bitter, no? There are many ways to be useful to society. Helping people travel cheaply to cool places, for example. I don't really want to be told why I should start a company, though. Demand that I benefit society and I will probably just play punk rock instead. But damn it there might be social benefit lurking in that too!
Bitter? Not really. Skeptical? Absolutely, and admittedly for not terribly well-defined reasons.
I just don't think the trend of having founders being able to extract more millions sooner from their companies is a good thing. It just invites more greed from Wall Street types into the Valley.
Edit: Your tone seems a bit bitter, no? There are many ways to be useful to society. Helping people travel cheaply to cool places, for example. I don't really want to be told why I should start a company, though. Demand that I benefit society and I will probably just play punk rock instead. But damn it there might be social benefit lurking in that too!