Get Nicole, thanks for the feedback. Here is some more context:
We’re not able to make lots of future projections, but we have big ambitions for the company. We are working on a new economic engine for culture. We think the best way to achieve that is to build a successful independent company, which could involve going public one day, but for now we are focused on building.
Right now our (pre-money) valuation is $585M. If we have a successful exit in the future (like an IPO, merger, or acquisition) for more than that amount, you’ll see a return on your investment. Since we’re selling the same class of stock we sold to VCs in our Series B, you’ll get paid out at the same time that they do.
I'm trying not to be a hater with respect to this, but Nicole you're asking all the right questions and pointing out all the potential issues. I'm having a hard time believing anybody will be buying in at the same terms, with the same rights, with the same voting power, as the initial Series B investors. That may be the case, but why not just come out and say that? I'm very skeptical of whatever fine print will be attached to the final terms.
All that said, if this truly is a way for writers to become shareholders, it's a great idea and something I support. Nothing about the way this is being presented gives me that confidence, however.
Get Nicole, thanks for the feedback. Here is some more context:
We’re not able to make lots of future projections, but we have big ambitions for the company. We are working on a new economic engine for culture. We think the best way to achieve that is to build a successful independent company, which could involve going public one day, but for now we are focused on building.
Right now our (pre-money) valuation is $585M. If we have a successful exit in the future (like an IPO, merger, or acquisition) for more than that amount, you’ll see a return on your investment. Since we’re selling the same class of stock we sold to VCs in our Series B, you’ll get paid out at the same time that they do.
I'm trying not to be a hater with respect to this, but Nicole you're asking all the right questions and pointing out all the potential issues. I'm having a hard time believing anybody will be buying in at the same terms, with the same rights, with the same voting power, as the initial Series B investors. That may be the case, but why not just come out and say that? I'm very skeptical of whatever fine print will be attached to the final terms.
All that said, if this truly is a way for writers to become shareholders, it's a great idea and something I support. Nothing about the way this is being presented gives me that confidence, however.