There are a lot of factors to weight when considering a sale. It's not as simple as weighing the (rumored and potentially inaccurate) purchase price.
You can't say it was foolish unless you know everything--payment schedule (cash/stock/milestones), ambition of founders, post-acquisition employment requirements, future direction of the product.
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There are a lot of factors to weight when considering a sale. It's not as simple as weighing the (rumored and potentially inaccurate) purchase price.
You can't say it was foolish unless you know everything--payment schedule (cash/stock/milestones), ambition of founders, post-acquisition employment requirements, future direction of the product.
not to mention that a sub $20M sale on $4.2M investment would not be seen favorably at all by the investors sitting on the board.
Right. I don't know what their premoney was, but it had to be in the 8-10 range I'd guess. VCs don't approve 2x returns.