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How bad are bad fundraising terms?

19 pointsby nealwuover 7 years ago

1 comment

Eridrusover 7 years ago
The analysis is useful, but seems undermined by the fact that Square is now trading at $32, which would put you significantly in the money.<p>When you look at the table in the end, it seems like it&#x27;s more important to pick the right company, than the exact deal terms. Square was much more overvalued than Theranos, but obviously people at Square did significantly better from their equity.<p>I also wonder what sorts of strike prices people see at these startups; I would think a company&#x27;s fair market value analysis would take these deal terms into account and use that lower price for the strike price.