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But the 409a is a valuation of the common stock and that preferred stock investor might have liquidation preferences or other terms that de-risk their investmen
by molsongolden 5y ago
But the 409a is a valuation of the common stock and that preferred stock investor might have liquidation preferences or other terms that de-risk their investment compared to common stock.
- lmeyerov 5y agoYep. 409a assigns common shares (your options are last money out) as 20-30% of investor's preferred shares (first money out) in seed-stage co's. Given today's giant series a/b that far outstripe their revenue, probably still high for most flashy co's. Am curious if/when they typically meet. By the time a co switches to RSUs, sure, but when before then - enough fit for funding growth w/ < 2yr payback period?