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The dilution image made by EquityZen is interesting: https://pbs.twimg.com/media/B8DCNDoCcAAU3jM.png:large https://pbs.twimg.com/media/B8DCNDoCcAAU3jM.png:large
by buro9 12y ago
The dilution image made by EquityZen is interesting:
https://pbs.twimg.com/media/B8DCNDoCcAAU3jM.png:large https://pbs.twimg.com/media/B8DCNDoCcAAU3jM.png:large
Those last two major investors lost a lot of money.
Is that usual? Do investors usually come in for the long-term even though they faced an IPO that would lose them a chunk of the value?
- sbisker 12y agoIIRC, the last two investors had some sort of deal where if the IPO was priced at under $20, Box paid them some sort of penalty. (Maybe someone here remembers the details better than me.) I'm sure they watched their backs on the paperwork and that any gain like the one the stock is currently seeing is a win for them.
- capkutay 12y agoWell its such a late stage investment at a very high valuation. Either they did it for the portfolio logo, or they just want to make a safer investment that will cap out at 2x or 3x at best.
- tinkerrr 12y ago>Those last two major investors lost a lot of money. Depends, actually, on how much of their stock they sold at the IPO price. Box is already trading above the last round valuation even though the IPO was priced below it.
- atishd 12y agoAs sbisker said, the last round investors had preference protection in the form of a ratchet (i.e. they got some multiple of their shares because the IPO came in under a certain price). EquityZen seems to have updated their piece