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Funding rounds are usually preferred stock (though I hear Uber may have done some common stock in the last round, anyone know more?). Preferred stock gets paid
by chris_va 11y ago
Funding rounds are usually preferred stock (though I hear Uber may have done some common stock in the last round, anyone know more?).
Preferred stock gets paid out first, so the actual "valuation" here is less meaningful. Preferred investors would still make a profit if Uber exited for $8B instead of 62.5B.
- askafriend 11y agoHow will this affect the employees?
- chris_va 11y agoAfter the preferred money is paid out, the preferred stock converts to common stock at some multiplier. The multiplier is usually 1x, though it varies. At that point, whatever money is left is generally split between all common shareholders (investors and employees).