2 ms·
Well, without knowing the liquidation preferences it’s impossible to tell what the common stock is actually valued at. Better to think of it as the price of a
by tvladeck 8y ago
Well, without knowing the liquidation preferences it’s impossible to tell what the common stock is actually valued at.
Better to think of it as the price of a call option on equity at an (unknown to us) strike price (the liquidation pref). And then when you pretend that’s the price of common stock and extrapolate out you get a $B, or two.
- lquist 8y agoThat’s fair but if I may use some heuristics here if they are able to get investors like Sequoia and Accel the round is almost definitely competitive enough that they can dictate terms and get clean term sheets