article thumbnail

Second-Class Investor Citizens: Facebook’s IPO and Dual-Class Equity Structures

Gust

Options and warrants, when issued, are also typically exercisable for shares of Common Stock. By contrast, venture capital and angel investments normally take the form of Preferred Stock with rights and preferences set forth in the company’s Certificate of Incorporation and other governance documents.

IPO 159
article thumbnail

Capital Market Climate Change

Ben's Blog

Perhaps you are caught in the “Series A crunch” or perhaps you are a consumer company and expected that you would be valued on users rather than revenue like the last time. 3/29/2002: 82.5. They might have said something ridiculous like: “Based on the current price of the preferred stock, your offer is already worth $5M.”

article thumbnail

Capital Market Climate Change

Ben's Blog

Perhaps you are caught in the “Series A crunch” or perhaps you are a consumer company and expected that you would be valued on users rather than revenue like the last time. 3/29/2002: 82.5 They might have said something ridiculous like: “Based on the current price of the preferred stock, your offer is already worth $5M.”