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Well, it was a 24% cash out, and this is a question of liquidation preference more than anything else.
by huac 11y ago
Well, it was a 24% cash out, and this is a question of liquidation preference more than anything else.
- x0x0 11y agoThey raised $25m, it was presumably valued at much more. That's a very large cash-out either way, but I think my point stands.
- huac 11y agoYou're not happy with an equity investor thinking that his investment should receive priority liquidation preference? Like I understand he might not come across as a good guy. But his comments are specifically about the scenario where a company fails - should the investors or should the founders have preferential bankruptcy treatment? What else could a VC say?
- JamesBarney 11y agoThe founders of Secret did not withdraw their money after the bankruptcy but during the fundraising previous to the bankruptcy. Liquidation preference during a bankruptcy event is completely orthogonal to "Should founders give back money they got from selling their stock to investors if the stock later tanks?".