The Truth About “Employee-Friendly” Financing Deals

There’s a new buzzword in Silicon Valley that should be raising eyebrows: employee-friendly.

You saw it earlier this month when Foursquare discussed a new round of financing at less than half the company’s highest valuation. You saw it when Jawbone CEO Hosain Rahman told the Financial Times that the company’s recent financing—also at half its one-time peak—included an “unprecedented” compensation arrangement for employees.

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I’d love to know if you are hearing about any creative ways struggling companies are compensating employees.

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Read comments from top tech and industry leaders
Joe Lonsdale
Joe Lonsdale
Founding Partner, Eight
Chamath Palihapitiya
Chamath Palihapitiya
Founder & Managing Partner, SocialCapital
Tina Sharkey
Tina Sharkey
CEO, Brandless
Jonah Peretti
Jonah Peretti
CEO, Buzzfeed
Adam D'Angelo
Adam D'Angelo
CEO, Quora
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Brit Morin
Founder & CEO, Brit + CO
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Dustin Moskovitz
Co-Founder, Asana
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Christina Miller
President & General Manager, Turner
Max Levchin
Max Levchin
CEO, Affirm
Adam Mosseri
Adam Mosseri
Director of Product, Facebook
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Alex Mather
The Athletic
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Martha Josephson
Partner, Egon Zehnder
James Murdoch
James Murdoch
Co-Chief Operating Officer, 21st Century Fox
Andrew Kortina
Andrew Kortina
Founder, Venmo
Ben Chestnut
Ben Chestnut
Co-Founder & CEO, Mailchimp
Ruchi Sanghvi
Ruchi Sanghvi
VP Operations, Dropbox
Any struggling company—and make no mistake, a company that has to cut its valuation in half to raise money falls into that camp—needs to keep employees happy.