David Frankel

And what we're doing is your initial founders are showing such enthusiasm for your company that that can only be great as a selling point when you do the next round. So that's a different take on it. But I think you can do that. You can do it in the opposite direction where you just show unbridled enthusiasm. And in a way, that's testimonial marketing for the founder.

And what we're doing is your initial founders are showing such enthusiasm for your company that that can only be great as a selling point when you do the next round. So that's a different take on it. But I think you can do that. You can do it in the opposite direction where you just show unbridled enthusiasm. And in a way, that's testimonial marketing for the founder.

And what we're doing is your initial founders are showing such enthusiasm for your company that that can only be great as a selling point when you do the next round. So that's a different take on it. But I think you can do that. You can do it in the opposite direction where you just show unbridled enthusiasm. And in a way, that's testimonial marketing for the founder.

I would disagree with Nick because I would say prefs are fundamental, saying you should give your investor their money back before you kind of distribute the spoils to everybody. I think that's a fair tenet. I think most entrepreneurs would go, yeah, giving them their money back is fair. I remember in Uber, by the way, we had preferred shares.

I would disagree with Nick because I would say prefs are fundamental, saying you should give your investor their money back before you kind of distribute the spoils to everybody. I think that's a fair tenet. I think most entrepreneurs would go, yeah, giving them their money back is fair. I remember in Uber, by the way, we had preferred shares.

I would disagree with Nick because I would say prefs are fundamental, saying you should give your investor their money back before you kind of distribute the spoils to everybody. I think that's a fair tenet. I think most entrepreneurs would go, yeah, giving them their money back is fair. I remember in Uber, by the way, we had preferred shares.

Eric was the first investor, was one of the first in the first round on Uber. And I remember one of our LPs saying, you've got Common. And Eric went, no, no, no, they're preferred. And our investor said, no, no, you've got Common. And Eric was like, what are you talking about? Like, they're preferred. He said, well, you're under a stack of so much prefs. You're under like $5 billion of prefs now.

Eric was the first investor, was one of the first in the first round on Uber. And I remember one of our LPs saying, you've got Common. And Eric went, no, no, no, they're preferred. And our investor said, no, no, you've got Common. And Eric was like, what are you talking about? Like, they're preferred. He said, well, you're under a stack of so much prefs. You're under like $5 billion of prefs now.

Eric was the first investor, was one of the first in the first round on Uber. And I remember one of our LPs saying, you've got Common. And Eric went, no, no, no, they're preferred. And our investor said, no, no, you've got Common. And Eric was like, what are you talking about? Like, they're preferred. He said, well, you're under a stack of so much prefs. You're under like $5 billion of prefs now.

It's equivalent to Common. And so I think there's another way of looking at that, of going, when companies raise so much money, if you're in the very beginning, right, do you really have prefs? You're under that whole pref stack, unless you got kind of pari passu. And I think that's changing in this environment now. How's that changing? Well, I think the terms are getting tougher.

It's equivalent to Common. And so I think there's another way of looking at that, of going, when companies raise so much money, if you're in the very beginning, right, do you really have prefs? You're under that whole pref stack, unless you got kind of pari passu. And I think that's changing in this environment now. How's that changing? Well, I think the terms are getting tougher.

It's equivalent to Common. And so I think there's another way of looking at that, of going, when companies raise so much money, if you're in the very beginning, right, do you really have prefs? You're under that whole pref stack, unless you got kind of pari passu. And I think that's changing in this environment now. How's that changing? Well, I think the terms are getting tougher.

You know, there's so much capital out there, but later stage capital can call the shots a lot. And it depends on how well the company's performing. But when tougher performance companies raise money, the terms are getting tougher.

You know, there's so much capital out there, but later stage capital can call the shots a lot. And it depends on how well the company's performing. But when tougher performance companies raise money, the terms are getting tougher.

You know, there's so much capital out there, but later stage capital can call the shots a lot. And it depends on how well the company's performing. But when tougher performance companies raise money, the terms are getting tougher.

as well. And the pref stack, like Perry Pesu feels like something of the past. There's a real pref stack coming.

as well. And the pref stack, like Perry Pesu feels like something of the past. There's a real pref stack coming.

as well. And the pref stack, like Perry Pesu feels like something of the past. There's a real pref stack coming.

Well, the listed markets change completely. So if you look at SAS multiples in 21, 20, where that was 20X, and then you look at those SAS multiples as five, six X, that trickles down. So later stage investors that invested in private at a billion and expected that rule of 40 to be at least profits and huge growth all the time, and that hasn't materialized.

Well, the listed markets change completely. So if you look at SAS multiples in 21, 20, where that was 20X, and then you look at those SAS multiples as five, six X, that trickles down. So later stage investors that invested in private at a billion and expected that rule of 40 to be at least profits and huge growth all the time, and that hasn't materialized.