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> It’s 10x return on what they reserved to invest – a bigger number that takes in to account the total amount they predicted you’d need over the course of your
by draggnar 15y ago
> It’s 10x return on what they reserved to invest – a bigger number that takes in to account the total amount they predicted you’d need over the course of your company’s future
Does anyone know of any examples where a VC did not allow a sale to happen because they were going to do another round? The argument here makes logical sense but I have never actually seen an example of this.
- apenwarr 15y agoIt's not "because they want to do another round." They don't necessarily want to give you the extra money, but the final amount of their return does need to be a multiple of the number they could have invested, not the number they did invest. Thus they need your company to grow more than you might think they do, and they could block a sale in the hopes that will happen. If you end up needing more investment after the sale has been blocked, that's fine, because they have money in reserve, but actually giving you the money is not the overwhelming motivation.
- draggnar 15y agoThat makes sense. Is sales being blocked by investors a common thing?