There has to be a better way
Jamie Goldstein
584
Ric, you are assuming that an investor who is purchasing common stock will insist on a lower pre-money than an investor who is buying a preferred. The analysis would suggest that these “features” are not worth anything and therefore giving them up would not warrant a discount on the round. In other words, I believe an enlightened investor would pay the same for common as they would for preferred in an early stage financing.