Submitted by chrisdh79 t3_zqb6x2 in technology
drawkbox t1_j10imuo wrote
Reply to comment by nilogram in Over 67,000 DraftKings Betting Accounts Hit by Hackers by chrisdh79
Funders are pre-IPO and control the board, subsequent funding and essentially everything about the company. Even with massively big investors post-IPO this is still the case.
nilogram t1_j10l79j wrote
Thanks for the clarification! Have an awesome day too
drawkbox t1_j10mdib wrote
You as well.
Yeah some people forget to just base it on their own experience. At most companies, everyone knows the original funders have all the pull and all the control. Even if you IPO, even if there are large institutional shareholders. A new tactic of foreign money is setup the initial funding and companies, then draw in the West investment on top, but retaining control.
Many, many companies have been setup this way in the last two decades. For instance, Tesla got 85% of all pre-IPO and post-IPO funding from Chinese banks, that has leverage attached. Even this here reddit was setup that way (DST Global via Yuri Milner like Facebook, Twitter and others -- same funders of DraftKings)
nilogram t1_j112esd wrote
Love this thank u! 95% of people don’t realize who really owns what in the big businesses
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