Giffon: High Liquidation Preferences Can Render $10M ARR Startups Completely Worthless
Jeremy Giffon · Data Backed Businesses Guaranteed To Make +$1M From Day 1 · Apr 17, 2024 · at 28:50
Former Tiny executive Jeremy Giffon explains the structural opportunity in distressed venture cap tables created during the 2020–2021 market peak to Sean Puri and Sam Parr.
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“You can have a business that's doing ten million dollars a year of revenue and growing 30% a year, but maybe it raised 40 or fifty million dollars. And such that like The founder is probably not going to make any money because the pref stack is so high. And then the other part is the investor is really not going to make any money, not in the sense that they want to.”
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