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How likely is it though that the board would have accepted the deal in a real scenario? The VC returns in the example aren't exactly home runs. Wouldn't they be
by rsp1984 9y ago
How likely is it though that the board would have accepted the deal in a real scenario? The VC returns in the example aren't exactly home runs. Wouldn't they be incentivized to block the deal and wait for a better one?
- gedrap 9y agoI guess quite likely? In this scenario, it sounds like the goal of Series C was just to get some, any return. And getting back your initial investment sure sounds better than getting nothing back.
- moxious 9y agoI doubt that was the goal of series C as any investor in that round would have been throwing good money after bad. If you're the VC in that case you're probably better off investing in a growth operation that trying to salvage a previous bet