Redbus

Venture great(p) 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 corporate Venture Capital (CVC) Metapath Software Professor Sandeep Dahiya Georgetown University OUTLINE What happened. The broader themes: The interplay of terms. Options in semiprivate equity. WHAT HAPPENED (1) The Company turned down Cell good school: Offering 30% of their capitalization indicated that their base line of work had particular upside. Cl early on there were ongoing financing risks and fluidness issues. The run low was not compelling. Cell Tech stock list fell $9 --> $3 After 3 long time 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 found 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 acknowledge any change of catch event. Management maintained both rights could be preserved in capitalization post-merger. Late stop investors knew company worth more than than their ~$24mm liquidation preference, so were unforced to vote down l ook at (votes were by class)--they won. ! WHAT HAPPENED (4): Lessons knowing Metapath used too much money: condescension unceasing 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 patient of 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 ordering it on our website: OrderCustomPaper.com

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