johncoogan
Joined 15 years ago
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Joined 15 years ago
Not possible in the usual 10 year timeframe we consider for Silicon Valley type companies.
Or
Never in a million years, completely violates the laws of physics.
The risk is that one of the later investors had a ratchet or something that would allow them to claim more of the proceeds in a sale. You can't just take $220M cash, subtract $105M in funding and pass that to the founders and employees. The preferred shares were probably "participating" meaning they get a portion of the common.
Here's an example of a ratchet: https://www.forbes.com/sites/petercohan/2015/11/07/unicorn-s...
john at www.johncoogan.com