Friday, May 16, 2008
VC Strategy: Get The Inside Track On A Recap
Because it's Friday afternoon, I was thinking about Jobster's $7M recap news from last month - of course, existing investors participated. Then I free associated Andy's Kefta post series (which is awesome). It might work out pretty well for a seed investor to bring in a large subsequent round from a strategic and then pump more cash into a recap if you were able to cram it down enough. Even if the prior money wasn't spent in the most efficient way possible, there's certainly going to be some amount of value that was created to buy at a strong discount.
Posted by Mathew Johnson at 5:15 PM