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Brutal result after years of work - "a less than $500,000 cash consideration from FullContact, which will be used to facilitate shutdown."
by nickfrost 9y ago
Brutal result after years of work - "a less than $500,000 cash consideration from FullContact, which will be used to facilitate shutdown."
- gnicholas 9y agoIt wasn’t an all-cash deal: > The deal additionally included a stock transaction
- mooreds 9y agoYes, 500k of stock (at present value). So $1M. Tough outcome.
- gnicholas 9y agoSounds like you've got inside info. In situations like these does that go 100% to investors, or do founders/early employees take even a small piece?
- jpeg_hero 9y agoThe “inside info” of actually reading the article. Hahah.
- gnicholas 9y agoAh, I see the article has been updated. The details on the stock side of the transaction were not in there when I read the article yesterday.
- jasondrowley 9y agoThe article said that "common" shareholders walk out with nothing. Typically, founders and early employees are issued only common stock, while investors are issued "preferred" shares. Unless the founding team invested their own capital alongside the angels and professional VCs involved in their rounds, it's not likely that they were preferred shareholders. Preferred shareholders are first in line to get cash payouts after liquidation. Common shareholders are able to access cash only after all of the preferred shareholders have been paid. I wrote a series on the subject I could share if you're interested.