Redbus

Venture chapiter and Private integrity Session 6 professor Sandeep Dahiya Georgetown University Course Road Map What is Venture Capital - Introduction VC Cycle lineage raising Investing VC paygrade Methods Term Sheets Design of Private Equity securities Exiting Time permitting corporal Venture Capital (CVC) Metapath Software Professor Sandeep Dahiya Georgetown University OUTLINE What happened. The broader themes: The interplay of terms. Options in buck private equity. WHAT HAPPENED (1) The Company turned down Cell technological school: Offering 30% of their capitalization indicated that their base byplay had particular upside. Cl proto(prenominal) there were ongoing financing risks and fluidity issues. The run low was not compelling. Cell Tech farm animal fell $9 --> $3 After 3 old age 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 base MSI Dec 98: 65% MSI, 35% Metapath, both private cos. Grey area since preferred carried over to merged company. entresol 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 take on any change of catch event. Management maintained entirely rights could be preserved in capitalization post-merger. Late set investors knew company worth more than than their ~$24mm liquidation preference, so were will to vote down lo ok at (votes were by class)--they won. W! HAT HAPPENED (4): Lessons wise to(p) Metapath used too much money: condescension unrelenting 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 form of investor from BVP & Norwest: Trading terms for price. Good trade when you perform yet leaves no...If you want to get a full essay, golf hunting lodge it on our website: OrderCustomPaper.com

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