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Interesting, this presents an meta for an early stage investor. Fund a company with a BS forecast based on your ability to make money on the claw back provision
by lumost 2mo ago
Interesting, this presents an meta for an early stage investor. Fund a company with a BS forecast based on your ability to make money on the claw back provisions.
- ElProlactin 2mo agoYou're never going to make money from that. By the time you're presented with the opportunity to use them, you're on the losing end.
- e40 2mo agoI see it as a game where investors get a better deal than the founders wanted. There is a lot of innuendo on the "we're not really interested, unless there's more upside for us" and the founders are then under pressure to up forecasts. I think the investors believe the business is sound. It's just a way to get it for a better price. Of course, if the business is a unicorn, none of this applies.