The PE market around firms at about this size is getting very, very interesting, and I think increasingly you’re going to see founders build companies engineered to achieve a similar outcome, with a capital stack to match.https://twitter.com/Shpigford/status/1326153473956716544 …
sure, and I'm decently convinced this is how it works, but I'm still asking: if I'm the VC and you call me up saying "I'm either gonna sell or shut down", I say "ok, I understand ...but since you're pocketing $4M, why not pocket $3.2M and pay me back my $0.8M"
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I mean ... there's a cap table, right? There are stock holders. So if the VCs hold 20% of the stock, isn't the DEFAULT that they take 20% of the purchase price?
Thanks. Twitter will use this to make your timeline better. UndoUndo
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A VC is entitled to ask for what they're owed under the contract, much like any business is entitled to ask for what it is owed under contracts, but businesses waive things in the interest of other business goals (like preserving relationships, branding, etc) all the time, right.
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ok, got it I was assuming that was it, but just wanted to have it spelled out that "yes, there's a cap table, yes, they're ENTITLED to get back the $800k, but they're choosing to purchase goodwill".
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