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WePay's (YC S09) next chapter

blog.wepay.com

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Re: WePay's (YC S09) next chapter

#41

Post by hkmurakami »

0xbear wrote: post #38
craigkerstiens wrote: post #27

Earlier quoted context omitted.

That is a solid outcome, but with nearly 80m (publicly) raised, likely not a giant return based on those numbers and length of company existing. Some may have done quite well, but plenty of unclear details. There are many notable home-runs for all players involved, FB, Whatsapp, etc, but those are often the exception. This isn't to say it's a bad acquisition or should be dismissed as a failure. It just re-iterates th…

That’s what people don’t get. It’s only really a decent outcome for the investors and the founders, and then only until you consider how long it took to get there. Front line grunt gets bupkis, and now has to find another job, because fuck working for a bank.

I mean, there are many reasons to work for a startup but pay is not one of them. If you want the payout, work for one of the majors.

Re: WePay's (YC S09) next chapter

#42

Post by 0xbear »

hkmurakami wrote: post #41
0xbear wrote: post #38

Earlier quoted context omitted.

That’s what people don’t get. It’s only really a decent outcome for the investors and the founders, and then only until you consider how long it took to get there. Front line grunt gets bupkis, and now has to find another job, because fuck working for a bank.

I mean, there are many reasons to work for a startup but pay is not one of them. If you want the payout, work for one of the majors.

That’s not what the founders will tell you. Even for employee #1 in 999 cases out of a 1000 it’s not really worth it, if the goal is to get ahead financially.

Re: WePay's (YC S09) next chapter

#43

Post by erikb »

The enterprisiest announcement I've read in a long time. And I work at a big corp. Wouldn't be surprised if many people who read this actually don't even understand that it basically says "hi guys, we got bought."

It's also hard to figure out what WePay has actually been doing. Great enterprise speak again.

So, that's what the banking world looks like? Even more enterprisy than the Enterprise despite being a start-up?

Re: WePay's (YC S09) next chapter

#44

Post by Kiro »

cmer wrote: post #17

I had breakfast with Bill a few years ago in Palo Alto. It was clear pretty quickly that WePay wasn’t a good fit for us, but he still managed to navigate me through the competitive landscape and helped me figure out which product was right, pitfalls to avoid, regulations, etc. He even offered his help for the future, even though we were giving him zero business. I’m writing all this because I left with the feeling th…

What's with the PS? Did he tell you that or are you saying he shouldn't waste his newfound riches on bitcoin? Seems really out of context otherwise.

Re: WePay's (YC S09) next chapter

#45

Post by spullara »

amorphid wrote: post #39
elvinyung wrote: post #33

Earlier quoted context omitted.

I mean, don't common stockholders (i.e. all employees) still basically get shafted in a down acquisition?

Say investors own 60% of the company. In an acquisition worth $220 million, 60% of the company would be worth $132 million. It's common for investors to have a 2x liquidation preference, meaning they get up to twice their money back before anyone other shareholders get $1. $80 million invested means investors get $160 million, more than the $132 million. $60 million would be left over for the founders and employees.…

If you see a 2x liquidation preference on a term sheet in this market I would be really surprised. Virtually every term sheet that isn't the one before an IPO or a recap will be non-participating preferred.

Re: WePay's (YC S09) next chapter

#46

Post by amorphid »

spullara wrote: post #45
amorphid wrote: post #39

Earlier quoted context omitted.

Say investors own 60% of the company. In an acquisition worth $220 million, 60% of the company would be worth $132 million. It's common for investors to have a 2x liquidation preference, meaning they get up to twice their money back before anyone other shareholders get $1. $80 million invested means investors get $160 million, more than the $132 million. $60 million would be left over for the founders and employees.…

If you see a 2x liquidation preference on a term sheet in this market I would be really surprised. Virtually every term sheet that isn't the one before an IPO or a recap will be non-participating preferred.

I confess I'm not an M&A/finance/VC-funding wizard. Would you mind giving an example describing the scenario you describe?

Re: WePay's (YC S09) next chapter

#48

Post by alexcnwy »

cmer wrote: post #17

I had breakfast with Bill a few years ago in Palo Alto. It was clear pretty quickly that WePay wasn’t a good fit for us, but he still managed to navigate me through the competitive landscape and helped me figure out which product was right, pitfalls to avoid, regulations, etc. He even offered his help for the future, even though we were giving him zero business. I’m writing all this because I left with the feeling th…

BTFD!

Re: WePay's (YC S09) next chapter

#49

Post by whipoodle »

erikb wrote: post #43

The enterprisiest announcement I've read in a long time. And I work at a big corp. Wouldn't be surprised if many people who read this actually don't even understand that it basically says "hi guys, we got bought." It's also hard to figure out what WePay has actually been doing. Great enterprise speak again. So, that's what the banking world looks like? Even more enterprisy than the Enterprise despite being a start-up…

Yes? People are not generally interested in financial institutions saying “bae is lit AF” or whatever.

Re: WePay's (YC S09) next chapter

#50

Post by gk1 »

erikb wrote: post #43

The enterprisiest announcement I've read in a long time. And I work at a big corp. Wouldn't be surprised if many people who read this actually don't even understand that it basically says "hi guys, we got bought." It's also hard to figure out what WePay has actually been doing. Great enterprise speak again. So, that's what the banking world looks like? Even more enterprisy than the Enterprise despite being a start-up…

I thought it was fairly clear. Chase wants to get into the fintech space so they acquired WePay.
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