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I've been trying understand this too. If you have a liquidation preference on your preferred shares that says you get your money out before others, does that j
by jannotti 7y ago
I've been trying understand this too. If you have a liquidation preference on your preferred shares that says you get your money out before others, does that just go away in an IPO? If it applies, how? Because it's not like there's a buyer who is putting up the entire market cap in cash.
But if it goes away, that's kind of an amazing loss of value for those holders. Do they have to agree to the IPO? (Maybe usually they do, but here Adam has super voting rights?)
- thedudeabides5 7y agoLots of people rambling their opinions here, but agree with this thread that having some actual information on what the consequences of such a down round would be, given the liquidity preference in their venture rounds. Crunchbase says $12.8bn of prior investment. Wouldn't that mean with a 1x liquidation pref that all the employees (including the CEO) would get wiped out?
- thedudeabides5 7y agohttps://www.crunchbase.com/organization/wework/funding_rounds/funding_rounds_list https://www.crunchbase.com/organization/wework/funding_round...
- marcinzm 7y ago>including the CEO Didn't the CEO/founder liquidate like $700 million during a previous round meaning he doesn't care?