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1) I think that's an interesting idea. 2) Complex pricing is hard to implement well (both for valuations and for product prices). It's friction for what could
by lpolovets 9y ago
1) I think that's an interesting idea.
2) Complex pricing is hard to implement well (both for valuations and for product prices). It's friction for what could be a straightforward transaction.
3) It's not clear to me why the investor would want their upside capped. E.g. if I buy stock in your company and the company becomes more 3x more valuable, then why would I be okay with my stock being 2x more valuable? Why not 3x just like you? (And likewise, the founder wouldn't want my stock to be 4x more valuable if the company is 3x more valuable).
- ScottBurson 9y agoJust throwing out an idea. I think I'll have to play with the dilution calculator for a while before I even form an opinion as to whether there's a good answer to your question. I was just going off the observation that uncapped notes are apparently not completely unheard of, for whatever reason, and so maybe there's some room for compromise.