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From what I understand, it wasn't all pure venture debt, but a split between convertible debt from insiders and venture debt from silver lake. Given silver lake
by awaxman11 14y ago
From what I understand, it wasn't all pure venture debt, but a split between convertible debt from insiders and venture debt from silver lake. Given silver lake's place in the capital structure and likely covenants, if foursquare is still burning a ton of money with minimal revenue in 6-12 months they probably can be paid with the new money from USV / Spark / a16z.
And in order for this deal to work out for anyone, the $2MM/year figure is going to have to be much larger. With 6.0 you can already see Twitter and Facebook esque promoted ads, which are going to make that figure grow a fair amount in my opinion.