Dave Morin was a former Facebook employee who set out to create a smaller social network, Path.He launched it in November, 2010. Three months later, Morin turned down a $100 million buyout offer plus a $25 million earn out over four years from Google.
The move shocked a lot of people. How could a young founder walk away from so much money after only spending three months on the product?
There was a rumour that Dustin Moskovitz, Facebook’s cofounder and one of Path’s investors, had something to do with the decision.
At TechCrunch Disrupt, Moskovitz admitted his role in Morin’s decision to decline Google’s offer.
“I can’t take full credit,” he says, “but we happened to be on vacation together. It was me, him and Brian Singerman of Founders Fund. It just was really clear from Dave’s body language and what he was saying that he didn’t want to do the deal. He was feeling pressured to do it. People were telling him, ‘Take the deal, don’t risk it all.’ The lesson learned is [founders should] set expectations higher [for themselves and their companies].”
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