The conventional strategy for successful tech founders typically involves gradually reducing ownership in their company through sales to venture investors, eventually becoming a minority owner, and then selling more stock after the company goes public. However, Dustin Moskovitz, co-founder of Facebook and founder of Asana, has taken a distinctly unconventional approach.
The Early Days of Asana and Public Listing
Moskovitz started Asana in 2008 with full ownership and took the company public through a direct listing in 2020, retaining about 36% ownership. While many founders opt to dilute their stake after going public, Moskovitz has pursued a different path. He has been actively acquiring more shares, significantly increasing his ownership to over 59.3% of outstanding stock as of November 2023, amounting to approximately 120.8 million shares.
Notably, Moskovitz has disclosed plans to buy up to an additional 30 million Class A shares in 2023, demonstrating his unwavering confidence in the company.
Why Is Moskovitz Acquiring More Shares?
Market Opportunities
In an interview, Moskovitz mentioned favorable buying opportunities in the market, which he has capitalized on. Despite Asana's stock rallying 66% this year, it remains well below its record high in late 2021. This discrepancy presents an opportunity for Moskovitz to acquire shares at a relatively low cost.
Philanthropic Intentions
Moskovitz's motivation for increasing his stake is not rooted in a desire for control. Instead, it aligns with his philanthropic goals. Together with his wife, Cari Tuna, Moskovitz has committed to donating the majority of their wealth to charitable causes through Good Ventures, a foundation that supports initiatives recommended by Open Philanthropy.
One of their key focus areas is artificial intelligence (AI) safety and governance. Good Ventures has made significant contributions, including a $30 million donation to OpenAI in 2017. Moskovitz sees AI as both an incredible opportunity and a critical area for proactive governance, which underscores his broader vision.
Additionally, Moskovitz and Tuna co-founded Open Philanthropy, a foundation dedicated to effective altruism. Open Philanthropy has been a major funder in the field of AI safety, contributing to think tanks and researchers focused on mitigating potential catastrophic risks associated with artificial intelligence.
AI and Asana's Future
Integrating AI into Asana
Moskovitz is deeply committed to integrating AI into Asana's workflows. He envisions AI-powered tools enhancing the platform by:
- Optimizing automation workflows
- Facilitating decision-making processes
- Improving overall productivity
His vision aligns with industry trends and positions Asana to remain competitive in a rapidly evolving tech landscape.
Broader Involvement in AI Development
Beyond Asana, Moskovitz has invested in AI startups like Anthropic and shares a board member, Adam D'Angelo, with OpenAI. He has expressed admiration for OpenAI's GPT-3 and GPT-4 models and supports safety evaluations for future iterations such as GPT-5 and GPT-6.
"AI technology needs to undergo rigorous safety evaluations before being widely released. This may require unprecedented regulatory coordination," Moskovitz noted.
Good Ventures has made significant donations in the AI space, including its $30 million contribution to OpenAI in 2017.
Financial Perspective
Despite his substantial wealth, Moskovitz views his Asana share acquisitions as a normal portion of his net worth relative to other founders. He currently owns about $2.6 billion worth of Asana shares, while his Facebook holdings amount to $4.6 billion.
Stock Buyback Program
In June 2024, Asana's Board of Directors authorized a $150 million stock repurchase program, allowing the company to buy back shares through June 30, 2025. Moskovitz expressed that this initiative reflects confidence in Asana's long-term potential and the belief that the shares are undervalued.
Compliance with NYSE Regulations
To comply with New York Stock Exchange regulations, Moskovitz has agreed not to acquire all outstanding shares or reach 90% ownership of Asana's common stock. This decision underscores his balanced approach to both corporate governance and regulatory compliance.
Conclusion
Dustin Moskovitz's strategy of increasing his stake in Asana is a reflection of his long-term vision, philanthropic priorities, and belief in the potential of both his company and artificial intelligence. His unconventional approach challenges traditional norms for tech founders and highlights his commitment to leveraging technology for societal good.
Moskovitz's journey with Asana serves as a testament to the power of aligning personal values with professional pursuits, making him a standout figure in the tech and philanthropy worlds alike.