The Acqui-Fundraise Hybrid Round
Patrick Mathieson

Confuses 2 issues : A’s stock is worth something in terms of B’s stock and a $25M investestment is also worth something in B’s stock. Don’t lump them together. B should say how much it values each.

I can tell why this is popular : in order to avoid a paper loss, investors want to get out of the burning ship that is A and move into the sinking one that is B.

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