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!
