Re:Economic Pessimism Growing in U.S.
by nradov on Tuesday May 31, 2022 @04:20PM
(#31574432)
That's not how it works. Angel investors and VC firms almost always purchase equity. It's not really possible to purchase pre-IPO stock on margin (although some wealthy investors can take out loans collateralized by their other assets, and then use that cash to invest in other opportunities).
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Re:Economic Pessimism Growing in U.S.
by mise_en_place on Wednesday June 01, 2022 @03:10AM
(#31579022)
Really? I thought it’s better to defer valuation as late as possible, due to the regulatory burden and cost.
There's no regulatory burden. Pre-IPO equity funding rounds always involve some kind of valuation process and negotiation. The investor is purchasing a certain percentage of the company for a certain number of dollars.