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That's a nice position to be in. Disolve some of your shares: investors take $70 million, you take $30 million. Everyone should be very happy. Be sure to check
by byoung2 13y ago
That's a nice position to be in. Disolve some of your shares: investors take $70 million, you take $30 million. Everyone should be very happy.
Be sure to check your term sheet. It could be that your investors have a liquidation preference that includes a multiple. Based on my (admittedly limited) understanding, if your investors gave you $50 million for 10% of the company, with a 2X multiple liquidation preference, they would be entitled to the first $100 million of any sale, plus 10%. So you may be able to sell for $100 million, but you wouldn't see a dime.