Before selling two-thirds of his company Gym Launch for $31M, Alex Hormozi had already taken $42M in distributions. This proves that for highly profitable businesses, the wealth generated from ongoing operations can be far more significant than the headline exit price, flipping the script on the importance of the final sale.

Data reveals a counter-intuitive trend in founder compensation. Bootstrapped founders have the highest average take-home pay at $650k, while Series B founders have the lowest at $260k. This challenges the assumption that more venture funding directly translates to higher personal earnings for founders in the growth stages.

Don't default to a 50/50 split on day one. Instead, agree to formally discuss equity only after reaching a predefined milestone, like $10,000 in revenue. This allows you to base the split on demonstrated contribution and commitment, avoiding the resentment from premature, misaligned agreements.

The founder's partnership allowed him to build a company without shouldering the initial financial risk. This "halfsies on risk" structure meant he never had true control or ownership, ultimately capping his upside and leaving him with nothing. To get the full reward, you must take the full risk.

When a company like Synthesia gets a $3B offer, founder and VC incentives decouple. For a founder with 10% equity, the lifestyle difference between a $300M exit and a potential $1B future exit is minimal. For a VC, that same 3.3x growth can mean the difference between a decent and a great fund return, making them far more willing to gamble.

An exit that provides a significant financial win but isn't enough to retire on can be a powerful motivator. It acts as a 'proof point' that validates the founder's ability while leaving them hungry for a much larger outcome, making them more driven than founders who are either pre-success or have achieved a life-changing exit.

Standout-CV's founder notes that his significant, ongoing involvement in the business makes potential acquirers reluctant to pay a simple multiple of MRR. Buyers discount the valuation because they must factor in the cost of hiring a replacement to handle the founder's tasks, a key consideration for solo founders planning an exit.

Exiting a cash-flowing business swaps a continuous income stream for a finite pot of money. This psychological shift can create deep financial insecurity as founders must now protect capital rather than generate it, even if they are objectively wealthy.

Marshall Haas sold a controlling stake in his company but retained significant equity. His goal was not just a cash payout, but to create a structure that provided ongoing cash flow, a continued advisory role, and a way to avoid the boredom and financial anxiety that often follows a complete, all-or-nothing exit.