I recently heard that some investors have looted founders with 2x liquidation preference. Thus, in case of a distress acquisition, the founders and definitely the employees wont get a dime of their crores of paper money.
What is the usual liquidation preferences that you have heard in startups??
1x is table stakes for most investors. At further rounds, it goes to 1.5x. If a founder raised out of desperation, 2x is likely.
How is it looting? It's their money, they want a preference if shit goes south
Byju's has raised nearly 6 billion in total and is now valued at 6 billion $. How does this work?
I mean won't this mean all equities of byju's will now be with VCs?
I got a offer where i will get the equity. Does people really make money when company get sold considering in my case if i get 1% equity.
Also how does it work? Suppose when we start valuation of the company is 1 cr so my part will be 1...
My profile: EX. Founder turned Product+ strategy person YOE: 5+ ESOPs: 80 lakhs Cliff: 1 year Vesting period: 48 months
I am still thinking after how many years it will be valuable given the liquidity is very rare for ESOPs. Any thoughts?
Another consumer tech startup bites the dust :/
https://entrackr.com/2023/10/ex-myntra-ceos-startup-virgio-shuts-down-after-raising-37-mn/
Get a tag(college/company) -> Open a startup -> Get Funding (even seed stage is fine) -> Burn money -> sell or shut d...
Virgio died a Virgin
They were trying to copy shein but didnt realise indian manufacturing ecosystem is diff than china in terms of way lo...
