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But they aren't exchanging it for cash, they are exchanging it for future profits ("They’ll pay us (...) from the company’s future profits") - which they would
by icebraining 7y ago
But they aren't exchanging it for cash, they are exchanging it for future profits ("They’ll pay us (...) from the company’s future profits") - which they would get anyway. No?
- giaour 7y agoI may have been reading it wrong, but my understanding was that they would be exchanging their equity for a fixed dollar amount, to be paid from future profits. If they didn't sell, they would continue to receive a fixed percentage of profits. Essentially, they're converting their equity into a loan.