yokumfloster

4 ms·

1. 1.▲
   by yokumfloster 1y ago

   And not only does she have to pay $300M – she didn’t even get the $175M that JPM paid. A lot of that — the majority most likely — went to her investors.
2. 2.▲
   by yokumfloster 1y ago

   That’s not how it works in venture. Investors want to be rewarded immediately. There might be an earn-out, but it’s relatively minor as compared to the purchase price – maybe 10% to 25%. And just as often, it’s not an earn-out of the origin
3. 3.▲
   by yokumfloster 1y ago

   She never had the full proceeds in her possession. Remember, she had investors. She was venture-backed startup. She likely only had somewhere between 10% and 25% of the equity at the time that she sold the company.