3 ms·
I think the founders negotiated a secondary in series A - took a couple million off the table. I imagine a16z likely had some clause in the paperwork that preve
by clpm4j 4y ago
I think the founders negotiated a secondary in series A - took a couple million off the table. I imagine a16z likely had some clause in the paperwork that prevented them from accepting an acquisition offer this early (I'm speculating).
- HWR_14 4y agoWhy would a16z want to block an acquisition offer that early? Or rather, I could see how a VC might want to ensure that the offer is a sufficent ROI, either by preapproving a minimum or requiring signoff. But why wouldn't a16z want to take their huge returns? Did their partners see a better ROI anytime soon?
- clpm4j 4y agoI'm not affiliated with a16z in any way, so I can't speak for their thoughts, but I do know that it isn't uncommon for VCs to have an "IPO or nothing" point of view. They invested in Clubhouse at a $4billion post-money valuation with what I imagine was/is a belief that it could be a $40billion exit in the future.
- HWR_14 4y agoOh, yeah if they invested at a $4 billion post I can see that exit being really unappealing. I assumed they went in at an earlier round at a eight or nine figure valuation, so I was thinking it was a 10-100x on their money in a year or so.