4 ms·
No, that's when the 2x comes into play. In this scenario, the investor gets the first 2x, and then after 3x doesn't make any more money.
by sama 11y ago
No, that's when the 2x comes into play. In this scenario, the investor gets the first 2x, and then after 3x doesn't make any more money.
- mikeyouse 11y agoOh wow, that is unique and very debt-like. My experience was closer to a 3x participating preferred.. Thanks for the clarification.
- mbesto 11y agoDo you think most entrepreneurs who take these debt structures realize the risk to their paper wealth? Or is it simply a matter of "we need the unicorn status to grow and hire" at any cost?
- rabbitonrails 11y agoIsn't that wrong because the preferred shares always have the right to convert into common?