Comment Comment by Chandraa Don't have a specific answer for you but:10 person startup. $2M raise. PE firm. Smells a lot like aquihire where existing investors got back some money and that's it.Note that even if the purchase price was more than $2m, it's possible that investors took all of it. Typically the liquidation preference is 3-5x.And it the common shares got paid, it's all or nothing AFAIK. I've never heard anything different, but I haven't seen enough.Regardless, generally speaking, an acquirer - especially a PE firm - would never take any legal risk in a transaction like this. parent Chandraa 2 years ago
10 person startup. $2M raise. PE firm. Smells a lot like aquihire where existing investors got back some money and that's it.
Note that even if the purchase price was more than $2m, it's possible that investors took all of it. Typically the liquidation preference is 3-5x.
And it the common shares got paid, it's all or nothing AFAIK. I've never heard anything different, but I haven't seen enough.
Regardless, generally speaking, an acquirer - especially a PE firm - would never take any legal risk in a transaction like this.