article thumbnail

The Corrosive Downside of Acquihires

Both Sides of the Table

And they might give a premium if the team has been around a longer period of time, has built some hard-to-build proprietary technology or has some customer traction. If the money comes from professional investors it usually has a “liquidation preference” meaning that their money comes out before the founders or common stock. (If

article thumbnail

Facebook S-1: The Most Anticipated IPO in a Decade ? AGILEVC

Agile VC

As a result, the amount these employees pay the company for these exercises is non-trivial… in 2011 these common stock purchases generated about $1 billion in cash for Facebook. To put that in perspective, Facebook’s overall operations (which are highly profitable) generated about $1.5 billion in cash profit last year.

IPO 100