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The early investors came in with a zero pre-money valuation, but the founders got warrants at two times, three times, and five times valuations.
Once the stock price doubled, the initial investors would be diluted. Once they had tripled their money, they would get diluted again. They would be diluted one more time when they had received five times their money.
[Founder] had created a contingent valuation. The effective initial valuation ultimately depended on how well [Company] did.
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First correct guess as to what company this is wins a special prize…
(If I emailed you this quote beforehand, you’re disqualified ;-)
