Redbus

Venture pileus 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 incorporate Venture Capital (CVC) Metapath Software Professor Sandeep Dahiya Georgetown University OUTLINE What happened. The broader themes: The interplay of terms. Options in close equity. WHAT HAPPENED (1) The Company turned down Cell technical school: Offering 30% of their capitalization indicated that their base craft had particular upside. Cl ahead of time there were ongoing financing risks and liquid state issues. The run low was not compelling. Cell Tech parentage fell $9 --> $3 After 3 years and several acquisitions, it rebounded. WHAT HAPPENED (2) Accepted RSC participating Preferred, later had to raise a $12mm Ser F Rd at $8/shr, had to keep participation. Merged with UK establish MSI Dec 98: 65% MSI, 35% Metapath, both private cos. Grey area since preferred carried over to merged company. mezzanine 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 imply any change of catch event. Management maintained wholly rights could be preserved in capitalization post-merger. Late stratum investors knew company worth more than than their ~$24mm liquidation preference, so were unstrained to vote dow n look at (votes were by class)--they won. ! WHAT HAPPENED (4): Lessons knowing Metapath used too much money: condescension recurring 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 flesh of investor from BVP & Norwest: Trading terms for price. Good trade when you perform notwithstanding leaves no...If you want to get a full essay, golf purchase order it on our website: OrderCustomPaper.com

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