Earlier quoted context omitted.
Why would he need to rationalize this to himself? He just made over a billion dollars.
He can, and will, continue to fail upwards.
With his luck he should jump in the 2020 primaries.
WeWork Needed a Bailout, But Adam Neumann Still Leaves a Billionaire
101–105 of 105 posts
Re: WeWork Needed a Bailout, But Adam Neumann Still Leaves a Billionaire
#102Earlier quoted context omitted.
“It takes two bad drivers to make an accident.“ F Scott Fitzgerald
First of all, I get your point. Still, this is an awful analogy. What about 1-car collisions? And what if I hit a parked car?
This is from Great Gatsby and not meant to be literal. It is how Jordan tells Nick that he is also to blame for their sad break up, as I recall. Typical HN to vote it down-- what a bunch of nerds! Just kidding.
Re: WeWork Needed a Bailout, But Adam Neumann Still Leaves a Billionaire
#103There is another less discussed downside to Vision Fund’s reckless spending and overvaluation of startups. While Travis & Adam make their billions, the employees at Uber and WeWork are granted overvalued options and stock that subsequently crashes. The Uber stock is still below where it was 5 years ago and may never recover. The WeWork stock will likely never recover. As an employee, I would avoid working for a compa…
I have asked this here before, but did not get a good answer. When a startup takes money from an investor with significant preferences and ratchets, why is the 409a valuation for common stock the same as those the investors got? At the startup I worked, during the initial rounds the common and investor class were priced significantly differently. But in later rounds they converged almost to the same price. What is th…
The 409a valuation isn’t typically the same as the investor price early on. This accounts for lack of liquidity and preference.
However, as those differences start disappearing, e.g. when WeWork and Uber were about to IPO, the 409a converges with the investor price.
Re: WeWork Needed a Bailout, But Adam Neumann Still Leaves a Billionaire
#104Re: WeWork Needed a Bailout, But Adam Neumann Still Leaves a Billionaire
#105Earlier quoted context omitted.
I have asked this here before, but did not get a good answer. When a startup takes money from an investor with significant preferences and ratchets, why is the 409a valuation for common stock the same as those the investors got? At the startup I worked, during the initial rounds the common and investor class were priced significantly differently. But in later rounds they converged almost to the same price. What is th…
The 409a valuation isn’t typically the same as the investor price early on. This accounts for lack of liquidity and preference. However, as those differences start disappearing, e.g. when WeWork and Uber were about to IPO, the 409a converges with the investor price.
But why?
By the price of common and investor class of shares converging, the implication is that the economic value of the preferences and other arrangements investors get is $0. That does not sound right to me.