Quote:
Originally Posted by Amnorix
Not that I do alot of VC work, but good luck. The number of busts for every boom is depressing. Even companies that eventually take off sometimes see the early investors get killed. The dread downrounds and dilution that wipe out all that came before the new money (except for management).
Why in the world did you exercise them, unless the option period was about to lapse? Make the 83(b) election, but otherwise, wait and cross your fingers is the normal rule.
But good luck!
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They were about to expire.
About the same time they announced the series C funding, they sent me a notice that they were issuing more stock. I assumed that those shares were to provide equity to the series C investors. If I divide the total series C funding by the shares of stock to determine the "market" price of the stock, I do quite well even with the dllution. I'm not sure if that is the right way to look at it or not.
I'm far from counting any chickens but the investors were fortune 500 companies that are leaders in their field. It was a gamble on my part, but it wasn't much money and I knew I couldn't look myself in the mirror if it turned out big and I had passed on it. So far it has done about as well as could be expected but there is still a long way to go.