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by boomzilla
4468 days ago
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It's easier to get a high valuation in a private round as the terms could be very favorable to investors: like 3x pref liquidation, etc. You don't need to sell the company for more than the valuation for the investors to make money. In fact they could even make money even if the company is sold for much less than the round's valuation. The only ones who are screwed are employees with common shares. Also, you can't short a private company, at least in the usual ways. |
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