Ep. 257 How I Raised It with Joe Vrankin of Puttshack
How I Raised It - The podcast where we interview startup founders who raised capital.
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The Benefits of Holding the Valuation of a Preferential Shareholder
Instead of just selling, well, I mean, investors are typically getting preferred stock anyway. They would get a preferred return before money went to the common shareholders. So what that did is it allowed them to go, okay, well, things don't go great. But by holding the valuation, that allowed us to structure a deal where the common shareholders were deluded much less than if everybody was treated equally.
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