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It means a VC paid $245 million to purchase 1.225% (which is $245M divided by $20B) of Stripe's stock.
by sophiebits 8y ago
It means a VC paid $245 million to purchase 1.225% (which is $245M divided by $20B) of Stripe's stock.
- adtac 8y agoIn transactions, is it typical to just create new stock such that the newly created stock is 1.225% of the final total? Would the previous investors agree to diluting their stock like that? Or is it common to sell from a common pool of stock that's owned by the company (who is that? the CEO? what is the company if not for the stock distribution?)?
- roel_v 8y agoYou should read a book on this, it's not something that someone can/will explain in a one off paragraph comment.
- adtac 8y agoAny recommendations? Thanks!
- roel_v 8y agoI was assigned several in lae school, they wouldn't be relevant to you. Any introduction book on corporate structure and corporate governance would do as a foundation (for your jurisdiction) I would imagine, any specific questions you would have after that would be answered in the followup material in the references of such a book. Business school and law school students have to buy many books on these topics, and their resale value is low. Any second hand book shop has lots of them, so does abebooks. It doesn't have to be expensive, it's the time you have to invest that 'costs' (in the generalized economic sense) the most.
- fierro 8y agoI would also like a rec