I can say with 100% certainty that if we raised an A right now, and I was able to take $1m off the table, that the likelihood of a big outcome becomes much, much more likely.
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Replying to @JordanGal
Curious to take it the other way (not because I disagree): what would you need salary-wise or distributions to allow yourself the same chance at a big outcome without taking $1M off the table now?
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Replying to @DanielZarick
You can’t justify a salary high enough for an early stage company to make up for the difference of $1m at once. What it does is calm the homefront and then increase willingness to decline a relatively low acquisition offer.
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Replying to @JordanGal
Yeah not really looking to justify it, more trying to unpack what that would need to be. $1M is a lot of money but not like.. A LOT of money. Even with that amount off the table there will be acquisition offers which are tempting but probably not ideal.
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Replying to @DanielZarick
Especially after taxes
In any such bargain with early investors would almost certainly come protection against low acquisition offers - liquidation preference, veto over acquisitions, etc1 reply 0 retweets 0 likes -
Replying to @JordanGal
Yeah absolutely. I definitely wasn’t disagreeing with the idea... I totally get it and would likely do the same.
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Replying to @DanielZarick
No worries. Just a tricky topic that’s rarely talked about.
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Yeah exactly. Definitely think it should be discussed a lot more, and not in situations like these where there’s press
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