How much riskier is a series B startup? The series B company is giving roughly 2.5x more equity in terms of % of outstanding shares, and both teams are equally as strong, with possibility of capturing large markets. The series D has about 10x-15x more annual revenue but lower margins. #tech #startup #offer
No true. I was at a series D and then we were acquired at 1/3 of series D valuation by a PE firm. Everyone got screwed. Series B is more fun anyway!
What happened at the series D? Was there a high bar due to expected growth?
Yes, there was a pivot in the product with strong partnerships that didn’t produce the results expected.
That’s what happens when a PE firm buys you and not an actual company wanting to improve the company. PE firms buy company’s to be their piggy bank and not to really improve the company.
Well it was disguised as another company that was actually owned by a PE firm.
A series D startup is on the way to IPO or acquisition. A series B hasn’t proven it’s going to be around in 5 years.