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It doesn't matter what percentage of a "seed company" I put, if it has a "low exit" (<$25M) I get $0... How is that possible?
by otto_ortega 9y ago
It doesn't matter what percentage of a "seed company" I put, if it has a "low exit" (<$25M) I get $0... How is that possible?
- maerF0x0 9y agoLots of investors have "Preference" which means they get a guaranteed minimum return on their investment. A rough example is like a 2x preference means when they put in $10M, the first $20M of the sale price goes to just those investors first . So if it sold for $20M, then everyone else gets $0.