Ryan Buckley: Xenon structures general manager shadow equity as side letters
Ryan Buckley · Flip Your SaaS Playbook: PE firm Acquires $1m ARR MightlySignal for .5-1.5x, Sold 24 months later for $4.5m. · Jul 14, 2022 · at 9:29
Former MightySignal CEO Ryan Buckley explains how private equity firm Xenon Ventures structures shadow equity compensation for portfolio General Managers.
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“And shadow equity also means that they so, you know, Xenon doesn't want to write GMs into the cap table. It's just it's just overhead, just kind of hassle. So it's essentially, it's a side letter that says if, and when there's a liquidity event, you get X percent.”
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