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Suhail @Suhail
, 6 tweets, 2 min read Read on Twitter
FanDuel raised $416M at a $1.3B valuation & got acquired for $465M. The founders will get nothing after nearly 10 years--can't really beat pref stack. Maybe they took something off the table but still a farcry from the goal. Let this be a reminder: raise what your company needs.
Fwiw, I can't imagine how the founders & team are feeling right now. It's unbelievable that a new CEO comes in after 6 mo & nets $11m. I am angry for them. 😡
“We never envisaged it would be used to screw everyone who wasn’t an institutional shareholder,” said one early FanDuel investor, who did not wish to be identified.

More: thetimes.co.uk/article/how-fa…
More info about FanDuel founders/employees getting screwed: Sounds like the the new investor shadily executed a nuclear option rarely deployed if investors see the business not succeeding (in their opinion) & want to return as much capital as they can for LPs. Founder nightmare!
"Drag-along rights are not uncommon and are used to allow majority shareholders to sell a company when a minority objects. However, they are rarely invoked in deals that result in early-stage investors being totally excluded from the spoils."
“Investors who participated in a $275m fundraising led by private equity giant Kohlberg Kravis Roberts (KKR) in 2015, meanwhile, have been awarded 2.35 new shares for every existing share.”

Read: heraldscotland.com/business_hq/15…
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