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How do the financials of an exit like this work out?
by wensing 17y ago
How do the financials of an exit like this work out?
- pchristensen 17y agoIt's probably up to the investors in FiltrBox to decide what share of cash and stock that want. Or rather they can accept/reject the deal and that would be one of their considerations.
- paraschopra 17y agoI am assuming it is <$5 million exit because Jive itself has funding of ~27 million
- rokhayakebe 17y agoIt could be more if they offered cash + stocks.
- webwright 17y agoPretty hard to know without knowing the landscape. Scenario #1: FiltrBox was almost out of money and wasn't doing well enough to justify additional investment. They had no compelling IP/patents. Investors make a few phone calls and get a CEO to "buy" the company, which really means $50k signing bonuses for the founders and a nice options package. Scenario #2: FiltrBox was killing it, growing like wildfire. They had a great IP attorney and some really impressive tech. Jive wanted the team and the IP bad and put together a $5m offer (stock heavy, likely). Or anything in between.... (or anything in between).
- wensing 17y agoI do wonder how they were doing. I tried out FiltrBox and after the trial they wanted $1k/yr for the service. Suffice to say we weren't their target market.