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Maybe I missed it but there doesn't seem to be much info on the selling price. Did it sell on the valuation implied by the last funding round or was it lower to
by thisisit 9y ago
Maybe I missed it but there doesn't seem to be much info on the selling price. Did it sell on the valuation implied by the last funding round or was it lower to "solve the risk problem for the investors?".
- hatred 9y agoUsually the common stocks goes at a discount of around close to 15-20percent when compared to preferred for good deals. If the company is not doing well, the discount would be higher proportionally.
- sulam 9y agoMy experience is that common can be one-third of preferred. I'm sure that spread varies, but it's wider than you're describing.
- acjohnson55 9y agoOut of pure curiosity, what perspective would give one this experience? I guessing working at a VC fund?
- sulam 9y agoFounding and working for multiple startups, including some that were fairly successful and therefore attracted multiple rounds of funding. I can't claim to have as much data as a VC would have, but I certainly have seen wider spreads personally, so I can attest that they exist.
- acjohnson55 9y agoGot it. Thanks for sharing! I wish there were a better clearing house for this sort of collective experience. I guess HN serves that purpose, to an extent, but it's hardly organized.