Digital Age DLC: Balance Issue
Posted: Thu May 30, 2019 8:01 pm
In Games where you set your own starting capital and that of your competitors as low or moderate AI telecom/tech firms start out as private companies where the Founder/CEO owns 100% of a company worth say 5-10+ Times what other starting firms are worth. When they IPO they own ~80% of the company which makes it very difficult for investors to purchase shares in the company greater than 20% because the founder never wants to sell or wants a ridiculous price.
• Maybe you should Start Telecom and Tech Companies in the Following Way:
o Telecom Companies:
-At Start Public or "Venture Capital" Owns 80%-90% and Founder/CEO Owns 10%-20% of Equity.
-Start with a little debt say 20% of assets or $100 Million Debt (Bonds in the Banking DLC)
o Software Companies: At Start Public or "Venture Capital" Owns 50%-60% and Founder/CEO Owns 40%-50% of Equity
Tech Founders do not usually start with 100% ownership of their companies they have the skills but they need the capital so they have to give up some control. This way when the telecom or tech company goes public the founder/owner would Own 30%-40% like founders of big tech companies like google, etc. not 80%. Telecom requires so much capital and they usually use some debt and so the CEO/Founder should only own a small percentage.
Venture Capital could just be a name on the shareholders list of private companies that would disappear when the company went public and convert all their equity into Public Shares like the "Venture Capital" Firm had their big "Exit".
Started From this Post
http://www.enlight.com/forum/viewtopic.php?f=7&t=5785
• Maybe you should Start Telecom and Tech Companies in the Following Way:
o Telecom Companies:
-At Start Public or "Venture Capital" Owns 80%-90% and Founder/CEO Owns 10%-20% of Equity.
-Start with a little debt say 20% of assets or $100 Million Debt (Bonds in the Banking DLC)
o Software Companies: At Start Public or "Venture Capital" Owns 50%-60% and Founder/CEO Owns 40%-50% of Equity
Tech Founders do not usually start with 100% ownership of their companies they have the skills but they need the capital so they have to give up some control. This way when the telecom or tech company goes public the founder/owner would Own 30%-40% like founders of big tech companies like google, etc. not 80%. Telecom requires so much capital and they usually use some debt and so the CEO/Founder should only own a small percentage.
Venture Capital could just be a name on the shareholders list of private companies that would disappear when the company went public and convert all their equity into Public Shares like the "Venture Capital" Firm had their big "Exit".
Started From this Post
http://www.enlight.com/forum/viewtopic.php?f=7&t=5785