4 ms·
You haven't taken in to consideration an important variable - how much of the 40M is invested by Sequoia vs. pro rata by existing investors.
by nickstinemates 12y ago
You haven't taken in to consideration an important variable - how much of the 40M is invested by Sequoia vs. pro rata by existing investors.
- spullara 12y agoThis doesn't actually matter assuming the 40m bought 10%.
- benologist 12y agoWhy does that matter, the other investors are hoping for returns too?
- nickstinemates 12y agoI was talking specifically about the equation, not about the expected returns of investors.
- benmathes 12y agopreferred vs common, participating preferred vs common (i.e. liquidation preference), possible pro-rata rights (thought at this stage further financings are probably unlikely) disclaimer: I work at greylock, who was an earlier investor, though have _zero_ inside knowledge of the deal as I work on unrelated stuff.