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well, sure, but we are talking about late stage. A late stage company expecting a 10X increase in value without going public? from the perspective of the investors, they gave up a nearly worthless option on the upside, while protecting their downside quite a bit, while preserving the positive optics for the company and employees



Because they are a different class of investor, with a more conservative outlook. T-Rowe Price doesn't believe in the 10x. It just wants the guaranteed 2x. This is where the "investors are looking for a fixed-income replacement" part of Sam's thesis comes into play.


T Rowe price has a seed fund, too, by the way.


perhaps, but T-Rowe Price needs to match a benchmark. So if benchmark rises 10x and they only get 2x, they will suffer quite a bit. More likely, they expect this company to go public way before hitting the 3x mark.


If benchmarks were rising tenfold nobody would want to put money into startups.


A late stage private co is not really a startup


Put this way, it seems like a bet that tech will outperform alternatives: you're constructing a conservative investment out of startup investing.




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