> Forget the fact that some of these valuations are illusory because the most recent investors have structured their investments as debt in all but name, meaning that they will stand to profit even if the company is worth far less.
Can anyone recommend anything to read to get an insight into how one of these deals works?
It's always seemed like liquidation preferences push a deal a fair way toward debt because (I think?) they get paid first and fully before anybody else. But that doesn't seem to be a recent thing at all.
A lot of these big rounds these unicorns are raising have crappy liquidation preferences, making the signal they give off of confidence in the company look much different.
Can anyone recommend anything to read to get an insight into how one of these deals works?
It's always seemed like liquidation preferences push a deal a fair way toward debt because (I think?) they get paid first and fully before anybody else. But that doesn't seem to be a recent thing at all.