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sama addresses the liquidation preference point: "Private companies are valued as of their last round that sold stock with at most a 1x liquidation preference o
by 2arrs2ells 12y ago
sama addresses the liquidation preference point: "Private companies are valued as of their last round that sold stock with at most a 1x liquidation preference or last secondary transaction of at least $100MM of stock."
- aliston 12y agoWhatever -- a 1x liquidation preference in the form of a nearly full ratchet, which is how most of these late stage investments are being structured, is still a far cry from the way that an investor in a public market would value these companies.
- aliston 12y agoBy the way, this isn't some theoretical situation. Box did exactly what I'm describing. Even in a frothy Fed-fueled stock market, they IPO'd at a lower valuation than their last private market round, which I'm sure was full of all sorts of balance sheet gimmicks, and the stock has been on a downward trajectory since.