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Yes, an acquisition would be a trigger. Typicaly there's 1x preference so $800k is paid back to the investors before the pie is split up. The cap for Baremetric
by cj 6y ago
Yes, an acquisition would be a trigger. Typicaly there's 1x preference so $800k is paid back to the investors before the pie is split up. The cap for Baremetrics was $10m.
They would end up with more than the initial $800k if they wanted it.
- texasbigdata 6y agoWhich implies, given the sudden rushed combination of “I’m bad at management” and “please no diligence” and “let’s go fast, 6 weeks”, that he’s lying about some or all of the story. The buyer won’t say anything, the seller won’t say anything, this blog posts remains as the record whether it’s 100% true or 75% true. Let’s take a specific example. General Catalysts 2001 fund is projected to generate a 11.9% annual return per the public disclosure from Calpers. (1, sort for the name). That same fund is shown as a 7.1% net IRR by the state of New Jersey. (2) The PR is soooo good, per some of the comments in this thread, General Catalyst is totally fine eating a bottom quartile return in a risky asset class (VC), which if you believed was their general behavior would prevent them from fundraising (therefore existing) going forward? Please. Maybe the fact pattern is as stated, but it seems fishy at best. https://www.calpers.ca.gov/page/investments/asset-classes/private-equity/pep-fund-performance/fund&id=4 https://www.calpers.ca.gov/page/investments/asset-classes/pr... https://www.state.nj.us/treasury/doinvest/pdf/AlternativeInvestments/PrivateEquity/General_Catalyst_SIC.pdf https://www.state.nj.us/treasury/doinvest/pdf/AlternativeInv...