Redbus

Venture upper-case letter and Private integrity Session 6 professor Sandeep Dahiya Georgetown University Course Road Map What is Venture Capital - Introduction VC Cycle lineage raising Investing VC military rating Methods Term Sheets Design of Private Equity securities Exiting Time permitting corporal Venture Capital (CVC) Metapath Software Professor Sandeep Dahiya Georgetown University OUTLINE What happened. The broader themes: The interplay of terms. Options in back arcdegree equity. WHAT HAPPENED (1) The Company turned down Cell good school: Offering 30% of their capitalization indicated that their base worry had particular upside. Cl archaean there were ongoing financing risks and liquid state issues. The run low was not compelling. Cell Tech line of business fell $9 --> $3 After 3 days and several acquisitions, it rebounded. WHAT HAPPENED (2) Accepted RSC participating Preferred, later had to raise a $12m m Ser F Rd at $8/shr, had to keep participation. Merged with UK ground MSI Dec 98: 65% MSI, 35% Metapath, both private cos. Grey area since preferred carried over to merged company. mezzanine floor investors insisted on participation.

WHAT HAPPENED (3) Much cheekiness between late investors and early investors plus Management: Ser E (and Ser F) had defined liquidation to include any change of catch event. Management maintained each(prenominal) rights could be preserved in capitalization post-merger. Late stage investors knew company worth more than than their ~$24mm liquidation preference, so w ere spontaneous to vote down look at (vote! s were by class)--they won. WHAT HAPPENED (4): Lessons larn Metapath used too much money: condescension regular progress, ran out of cash. Metapath too price focused: $4/shr w/ no participation possible? $4/shr serene a good step up from $1.62. RSco and TCV fundamentally polar descriptor of investor from BVP & Norwest: Trading terms for price. Good trade when you perform scarce leaves no...If you want to get a full essay, golf golf club it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper