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Salaries, rent on office space, equipment... If a company raises $50M in funding, spends $30M in four years before it gets acquired for $80M, then net-net the i
by blululu 4y ago
Salaries, rent on office space, equipment...
If a company raises $50M in funding, spends $30M in four years before it gets acquired for $80M, then net-net the investors have same amount of money after 4 years of work.
- benjaminwootton 4y agoEh? If you spend $30m and get $80m back you are in the black to the tune of $50m overall, even though your investors would probably be underwater.
- forrest2 4y agoInvestors usually have liquidation preference. If they do, they'll have a first dibs on that $50m up to their invested amount.