Sprinklr Acquires GetSatisfaction, Founders Get Nothing

#1

Post by mishmax » Sun, Apr 12, 2015, 11:25 PM UTC

Sprinklr Acquires GetSatisfaction, Founders Get Nothing
twitter.com

Re: Sprinklr Acquires GetSatisfaction, Founders Get Nothing

#2

Post by r0naa » Sun, Apr 12, 2015, 11:53 PM UTC

How is that even possible?

Re: Sprinklr Acquires GetSatisfaction, Founders Get Nothing

#3

Post by faramarz » Sun, Apr 12, 2015, 11:54 PM UTC

  "Quick clarification: Many, many of the investors & 
  employees didn't see any money, not just the founders.
  That's what I meant by fire sale."

https://twitter.com/monstro/status/585808886508040192

Re: Sprinklr Acquires GetSatisfaction, Founders Get Nothing

#4

Post by nacs » Sun, Apr 12, 2015, 11:55 PM UTC

faramarz wrote: post #3

"Quick clarification: Many, many of the investors & employees didn't see any money, not just the founders. That's what I meant by fire sale." https://twitter.com/monstro/status/585808886508040192

And the firesale tweet:

    To be fair, it was a total firesale. In the 
    years since we all got politely pushed out, the
    business had completely tanked.

https://twitter.com/monstro/status/585797874300035072

Also:

    Usually they at least throw the founders some
    hush money, but we didn't even get that! So 
    I promise you'll hear more about it soon.

https://twitter.com/monstro/status/585798828822892545

Re: Sprinklr Acquires GetSatisfaction, Founders Get Nothing

#5

Post by braum » Sun, Apr 12, 2015, 11:55 PM UTC

must be a reason... and "Nothing" could mean so many things depending on what you consider value. I assume it means no money (cash) or equity.

Re: Sprinklr Acquires GetSatisfaction, Founders Get Nothing

#6

Post by lukasm » Sun, Apr 12, 2015, 11:56 PM UTC

r0naa wrote: post #2

How is that even possible?

liquidation preference?

Re: Sprinklr Acquires GetSatisfaction, Founders Get Nothing

#7

Post by gesman » Sun, Apr 12, 2015, 11:57 PM UTC

Is that's the case where debt (in whatever shape or form) exceeded the payout?

Re: Sprinklr Acquires GetSatisfaction, Founders Get Nothing

#8

Post by mikedouglas » Sun, Apr 12, 2015, 11:58 PM UTC

r0naa wrote: post #2

How is that even possible?

Sounds like some investors took a wash too, so it's likely they had significant debt. Otherwise, it's because other investors held liquidation preferences (possibly at a multiple).

Re: Sprinklr Acquires GetSatisfaction, Founders Get Nothing

#9

Post by socceroos » Sun, Apr 12, 2015, 11:59 PM UTC

Judging by the tweets mentioned and linked in this thread, there are going to be some interesting articles come out of this.

I for one would love to see the intricacies of investor influence. This sounds like it was a total fluster cluck.

Re: Sprinklr Acquires GetSatisfaction, Founders Get Nothing

#10

Post by meritt » Mon, Apr 13, 2015, 12:00 AM UTC

Founders probably had a lower liquidation preference than early investors. The acquisition didn't meet the minimum return requirement of these early investors, so nobody else received anything.

Read your term sheets carefully, this isn't uncommon nor something to be surprised about.