4 ms·
I don't see how one can write an article about these funding rounds and not mention ratchets/liquidation preferences and executive/founder/insider stock sales.
by aliston 12y ago
I don't see how one can write an article about these funding rounds and not mention ratchets/liquidation preferences and executive/founder/insider stock sales.
I also don't see how one can look at these private, illiquid, balance-sheet gimmicks and think that the "valuations" are tied to anything in reality. It's a huge game of pass the bag, and it wont be pretty when these deals unwind.
- jacquesm 12y agoAll stock sales are 'insider stock sales' if they do not refer to a public company. How else do you think people become aware of the opportunity to buy or sell a stock in a private company if not through an insider?
- aliston 12y agoI am referring to the practice of taking money off the table vs. issuing new stock.
- jacquesm 12y agoIf all parties agree to that there is nothing wrong with it. Also, you can bet your bottom dollar that deals where money gets taken of the table are looked at even harder than ones where only new stock is issued.