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What if you raised 500B and still got nothing? That can happen with 2x or 3x liquidation preference. IDK FanDuel structure (not in article), but they only rais
by sb8244 3y ago
What if you raised 500B and still got nothing? That can happen with 2x or 3x liquidation preference.
IDK FanDuel structure (not in article), but they only raised ~ 400M. Yet the investors got every dime up to 550+M.
- jojobas 3y agoNobody forces you to sign away these preferences and participation. It might be a reasonable reflection of your pre-money worth (i.e. near zero) or it might not be.
- giantg2 3y agoFrom an investor standpoint, if I were risking that much momey on a high risk venture, I would want that kind of return to make it worth while and cover the others that don't make it.
- sb8244 3y agoThat's the name of the game. 1x non participating is a fine way to offset some risk. Anything more than that is greed.
- dukeyukey 3y agoFrom a founder/early employee perspective, if I were risking that much _literal lifespan_ on a high-rish venture, I'd want some kind of return to make it worthwhile.
- giantg2 3y agoYou mean like a salary and benefits?