Great read. Question, since Wistia took capital from private equity (Accel-KKR). These guys typically invest in equity-like instruments. Is there PIK (payment-in-kind) on the debt or does it have equity like upside? PIK debt can have ~7-15% interest where maybe half or all of the interest accrues in the form of more debt which in turn has PIK. Accel-KKR might be looking at a nice ~12% return (IRR) with relatively low risk. Note: figures above are made up.
Thanks for reading! We can't disclose the exact terms of the debt, but it's fairly traditional. The interest rate is higher than if we had years of profitability to show -- makes sense as that's the risk the lender is taking. Also, the team that did this is separate from their PE side. Slightly more details are here in this WSJ article: https://www.wsj.com/articles/ditch-the-venture-model-say-fou...
