3 ms·
Couldn't they have tried to sell their stake instead? Perhaps the same reason?
by petters 7y ago
Couldn't they have tried to sell their stake instead? Perhaps the same reason?
- eightysixfour 7y agoProbably but that would have come with a new lead investor who would have wanted a board seat and all of the other things that come with a $21m B round. They probably thought this would be the fastest way to escape the mistake without dragging it out. $21m is a costly mistake, but not as expensive as the reputation hit if this had been a protracted issue for Finix or the other investors.
- jessriedel 7y agoThey could have sold the stake without the board seat (and anything else) for less than $21M but a lot more than $0. Seems like there has to be another VC firm that would have paid $10M overnight.