VentureBeat’s Matt Marshall reports on MySpace co-founder Chris DeWolfe being “shortchanged” by the Fox MySpace acquisition. Reportedly he received only $5 million. On the one hand, how many people have $5 million? On the other, the company was sold for $580 million and so, if true, he was really diluted.
I spoke to a reporter last week who said the same thing and asked whether I’d heard that the MySpace founders were angry or frustrated with the money they received.
Many entrepreneurs I speak with aggressively caution against taking VC money. Something like: take as little as possible for as long as you can hold out. To that end, here’s an interesting NY Times piece (reg req’d) on the subject featuring IM “aggregator” Meebo, which was started with credit cards.
Low overhead is the answer to the question, “How can all these little companies survive?”