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I'm not saying that Kalanick et all aren't going to be very well off in any event, but all this cash they raise at eye popping valuations is going to have liqui
by qeternity 8y ago
I'm not saying that Kalanick et all aren't going to be very well off in any event, but all this cash they raise at eye popping valuations is going to have liquidation preference...and that's scary for a company with serious cash flow issues like Uber.
- naveen99 8y agopeople with lower liquidity preference (from earlier rounds or common share holders) usually have some opportunities to exit in secondary markets at each of these funding events.
- qeternity 8y agoThey do, but it's typically relatively small when companies need cash, since any secondary market transactions don't result in net equity issuance.