CEO Aaron Levie Will Only Own 4.1% Of Box When It IPOs, Investor DFJ Owns 25.5% • Hacker News Board

Re: CEO Aaron Levie Will Only Own 4.1% Of Box When It IPOs, Investor DFJ Owns 25.5%

#101

Post by ChuckMcM » Wed, Mar 26, 2014, 1:43 AM UTC

mahyarm wrote: post #96

ChuckMcM wrote: post #95

Earlier quoted context omitted.

It is clear from the tone that you've got some emotional investment here, and I respect that, and with all due respect the facts stand in argument to your thesis. Consider for that there are more millionaires and billionaires in the California than there are in New York ([1] [2]). The housing market that is the Bay Area exists not in a small number of neighborhoods, but from South San Jose to Novato in Marin. One has…

Do not look at the price of housing as an indicator of being wealthy! It's often an indicator of regulatory failure & NIMBYism more than anything. Otherwise my home area of Vancouver would be land of the wealthy, while it's actually became the 2nd most unaffordable city in the world. Unaffordable being housing price : annual income ratios. The bay area has started to attract mainland chinese cash too. Friends have be…

I wasn't going by the house prices specifically as an indicator, I was really trying to point out that Census data says that there are more millionaires per capita. In California. I used to be able to find it by county but the 9 bay area counties are well represented. All those millionaires are not "just the founders and a few MBAs"

Re: CEO Aaron Levie Will Only Own 4.1% Of Box When It IPOs, Investor DFJ Owns 25.5%

#102

Post by rahimnathwani » Wed, Mar 26, 2014, 2:33 AM UTC

sjg007 wrote: post #100

rahimnathwani wrote: post #92

Earlier quoted context omitted.

You would also need to know the # of options outstanding. You can't really calculate the value of options without knowing the complete cap table, and details of different share classes (particular liquidation preferences). I don't know whether it's common for small companies to share all of this information outside the senior team or potential hires for that team.

Yeah, I've gotten absolutely no where when I've asked.

In that situation, I would assume the value to be zero for the purpose of decision-making.

@sjg007 email me if you want to discuss in more detail (address in profile).

Re: CEO Aaron Levie Will Only Own 4.1% Of Box When It IPOs, Investor DFJ Owns 25.5%

#103

Post by thaumasiotes » Wed, Mar 26, 2014, 3:48 AM UTC

rahimnathwani wrote: post #70

FireBeyond wrote: post #65

Earlier quoted context omitted.

As I mentioned down thread, it's not that easy. Mike Davidson, who sold Newsvine to MSNBC and had enough liquid cash to (more than) cover his mortgage that day in its entirety still went through hoop after hoop even refinancing his loan. Risk is only a part of the equation here.

I was responding to a parent comment: "The point of the down payment is that you're able make good on the loan." I don't agree with that statement, as I believe the primary purpose of the down payment is a source of risk reduction for the lender, whose only guaranteed recourse is the collateral on the loan. In the UK, home loan products each have max LTV (loan-to-value) thresholds, and prices are inversely related to…

If your down payment is a gift, you're supposed to disclose that fact... the lender doesn't consider it equivalent.

Re: CEO Aaron Levie Will Only Own 4.1% Of Box When It IPOs, Investor DFJ Owns 25.5%

#104

Post by rahimnathwani » Wed, Mar 26, 2014, 4:36 AM UTC

thaumasiotes wrote: post #103

rahimnathwani wrote: post #70

Earlier quoted context omitted.

I was responding to a parent comment: "The point of the down payment is that you're able make good on the loan." I don't agree with that statement, as I believe the primary purpose of the down payment is a source of risk reduction for the lender, whose only guaranteed recourse is the collateral on the loan. In the UK, home loan products each have max LTV (loan-to-value) thresholds, and prices are inversely related to…

If your down payment is a gift, you're supposed to disclose that fact... the lender doesn't consider it equivalent.

If it's a bona fide gift, the lender will consider it equivalent. If you claim that the deposit is a gift, they may request a letter from the person who gave you the gift to confirm there are no strings attached, i.e. that:

- it's non-returnable

- it's not interest-bearing

- no interest in the property will be retained by the person giving the gift

If they didn't do this, the gifting party could later claim that the gift was in fact a loan, and that it is secured on the property. This could cause complications for the lender, who is relying on a first charge on 100% of the property as security.