Ash Narain
Sep 3, 2018 · 1 min read

Hey Patrick,

Great question!

Agreed on the down round in Fanduel’s case. Wouldn’t be able to make a guess! Super complicated and hard to figure if not privy…

About a non down round scenario — unless the exit value and multiple to capital raised is large, everyone earns a little, but not a lot :)

Jason Lemkin has written about the 10x rule — for every dollar raised, one is trying to return 10x — find it here — https://www.saastr.com/the-10x-rule-what-raising-1-of-venture-capital-really-means/

The larger the value of the transaction the better, as it leaves a lot more to distribute….

But clearly, if one is going through multiple raises (especially large ones), one needs an outlier outcome to come out winning…?

The 10x rule is a good rule of thumb!

    Ash Narain

    Written by

    Founder of Marquee Equity and BankerBay. Passionate about helping cos grow revenues and raise capital. Also love — Golf, Tennis & Adventure Sports