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Could you explain to me the point of it, though? What's the point of accepting 400M to build a business if you essentially don't own any of that business (beca

Could you explain to me the point of it, though? What's the point of accepting 400M to build a business if you essentially don't own any of that business (because of the 559M buyout ceiling). Were they gambling on a buyout more than 559? I don't understand why someone building a business would accept these terms.

jfray2k22 3y ago
It's quite possible that the founders cashed equity out of the funding round, and that could possibly be why it was such a large round. During the FinTech/Web3 boom back around 2019-2020, a ton of founders did this and it caused huge misalignments between them and their employees. Their thinking could be, "who cares if you didn't make anything from the acquisition when you've already taken $40MM off the table?"