A lot of people are going to dump on this billion dollar valuation, but we don't have the terms. Presumably there is liquidation preference. According to Crunch

A lot of people are going to dump on this billion dollar valuation, but we don't have the terms. Presumably there is liquidation preference. According to Crunchbase [1], the total capital raised is about $160 million after this money, so the investors don't need this company to be worth $1 billion to come out fine. Sam Altman made the point a few days ago that a lot of these late-stage private financings are kind of debt-like [2, about paragraph 8-9 and footnote #2], with the result that the valuations aren't really meaningful. [1] https://www.crunchbase.com/organization/udacity#/entity https://www.crunchbase.com/organization/udacity#/entity [2] http://blog.samaltman.com/the-tech-bust-of-2015 http://blog.samaltman.com/the-tech-bust-of-2015