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Amazing that repricings like this are so rare that even investors like A16Z never / rarely see it: >>“This is a unique situation, we’ve never seen it before an
by gatsby 10y ago
Amazing that repricings like this are so rare that even investors like A16Z never / rarely see it:
>>“This is a unique situation, we’ve never seen it before and we don’t expect to see it again,” said a spokesperson for Andreessen Horowitz.
What's the advantage for the company?
The article makes it seem like this was David Sacks' decision and he's trying to coerce existing investors into signing off on this "new deal," making it even more strange.
- 55555 10y agoYeah I don't get it. Is the company offering investors more equity in order to prevent a lawsuit for failing to disclose the shady stuff they were doing?
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- borski 10y agoYes. That is precisely what is happening.
- rlucas 10y agoSaying "even investors like A16Z" haven't seen it glosses over that A16Z, founded in 2009, is a babe in the woods as a venture firm, and has not been through even a single cycle yet. (Not ragging on them, but lots of these things go in cycles of 8-12 years or more and if your firm is 7 years old you may well have never seen the tough times. And as Buffett likes to say, it's only when the tide goes out that you see who's been swimming without trunks)