Redbus

Venture great and Private integrity Session 6 professor Sandeep Dahiya Georgetown University Course Road Map What is Venture Capital - Introduction VC Cycle lineage raising Investing VC valuation Methods Term Sheets Design of Private Equity securities Exiting Time permitting incarnate Venture Capital (CVC) Metapath Software Professor Sandeep Dahiya Georgetown University OUTLINE What happened. The broader themes: The interplay of terms. Options in unavowed equity. WHAT HAPPENED (1) The Company turned down Cell technical school: Offering 30% of their capitalization indicated that their base communication channel had particular upside. Cl proterozoic there were ongoing financing risks and liquidness issues. The run low was not compelling. Cell Tech monetary fund fell $9 --> $3 After 3 historic period and several acquisitions, it rebounded. WHAT HAPPENED (2) Accepted RSC participating Preferred, later had to rais e a $12mm Ser F Rd at $8/shr, had to keep participation. Merged with UK found 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 hold any change of catch event. Management maintained exclusively rights could be preserved in capitalization post-merger. Late coiffe investors knew company worth more than than their ~$24mm liquidation preference, so were volition to vote down look at (votes ! were by class)--they won. WHAT HAPPENED (4): Lessons erudite Metapath used too much money: condescension invariable 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 cast of investor from BVP & Norwest: Trading terms for price. Good trade when you perform that leaves no...If you want to get a full essay, golf bon ton it on our website: OrderCustomPaper.com

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