

Nobody Is Crying For You When You Are Worth Billions - dmoney67
http://www.avc.com/a_vc/2012/12/nobody-is-crying-for-you-when-you-are-worth-billions.html

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gojomo
Wilson writes that the investors setting the high 'headline' valuation are
really "buying a bond plus an option". That is, the preferred-payback amount,
plus an upside, rather than what a layperson might think of as X% of a $Y
billion company.

I wonder, then: could or should these big investments be structured as {bond +
options} rather than {preferred-stock + liquidation-preference}... precisely
to avoid the misperceptions of a giant 'valuation'?

