Bill Gurley

Like, trying to make $20 million selling a company for half a billion, that's hard because it's hard to sell a company.

You need audited financials.

You need, like, they're going to have to file an essay.

There's all this stuff.

It gets really hard to sell a company.

That's so cool.

It matters.

It really matters.

It really matters.

And by the way, if you sell that first company for 20 million that you own 90% of, and you want to go take the big shot and raise money.

Oh, great.

Now you, now you've got freedom, flexibility.

You can take all the risk you want, you know, do it the second time.

Lickpref is a beast.

What's that called?

Liquidation preference.

So venture capitalists typically take preferred stock and it has a term called liquidation preference, which means in a sale, they get the option to basically treat it like debt.

They get paid out first in a sale.

And so if you've raised, in these days, these AI rounds, if you raise 500 million, like common doesn't even participate until you get a sale over that.

Technically.