Remove Distribution Remove Down Round Remove LP Remove Venture Capital
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On the Road to Recap:

abovethecrowd.com

In Silicon Valley boardrooms, where “growth at all costs” had been the mantra for many years, people began to imagine a world where the cost of capital could rise dramatically, and profits could come back in vogue. Their own ego is also a factor – will a down round signal weakness? Competition also has access to capital.

IPO 40
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Some Thoughts and Models Around Ownership Targets

This is going to be BIG.

It doesn’t take into consideration options, down rounds, or recaps. It’s just a model of the share price of a company going up and to the right smoothly until it exits for $300mm, and the outcomes for the shares purchased in each round of financing. Here’s a very plain vanilla model. How much do they hold back?

Portfolio 110