Yeah, I had the same question. If there are 2 investors each investing 50M, and they're equally senior, they both get half of the sale value if it's < 100M. They get 50M + 8%/y if it's sold for 100M-3B. And they get 1/60 each if it's sold for >= 3B.
That sounds like a good deal even if you think SnapChat is only worth 200M...
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Yeah, I had the same question. If there are 2 investors each investing 50M, and they're equally senior, they both get half of the sale value if it's < 100M. They get 50M + 8%/y if it's sold for 100M-3B. And they get 1/60 each if it's sold for >= 3B.
That sounds like a good deal even if you think SnapChat is only worth 200M...
Ok, so the main thing I missed is the preferential terms that investors get in the event of a sale, namely that they will be the first money out.