I don’t think private investors invest for a mere 30% gain on a ratchet.
Capitalist Exploits
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Maybe, but it also means that the values that the rounds ascribed to the company can’t be compared to the IPO valuation because the payoffs and risks don’t match. I just feel like you’re jumping to conclusions about their pricing and performance. If you told most VCs they could do late stage rounds at 30% guaranteed with an option on upside, I think they’d be pretty pleased.