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Michael Eisenberg: Massive funds like Tiger Global overwhelm down-market cap tables

Michael Eisenberg · The Tiger Global Memo: From Sequoia Capital to Benchmark and Thrive: The World's Best on the Rise of Tiger Global · Feb 23, 2022 · at 6:54

Michael Eisenberg was not on this episode. A recording of them was played into it, so these are their words but not an appearance on 20VC. It still counts as said, and it is kept out of every score on their page.

Michael Eisenberg, co-founder and GP at Aleph, explains how mega-funds leverage their balance sheets to dominate startup cap tables when follow-on capital is needed.

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“What we often don't pay attention to is if you've got the largest war chest at the table, you've got a shot to overwhelm the cap table in a down market. Meaning, if I'm Tiger and, you know, I'm taking a large round from Tiger at a company, then the company needs capital at some point. They are, you know, kind of the winner in the capital sweepstakes in that case because they just have less price sensitivity and ability to overwhelm the cap table. And I think that's pretty meaningful.”

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