(2013-10-30) Kickstarter Nonexit Payback
In a Fred Wilson post about KickStarter, the question came up about how to pay back (VC) investors if there's no M And A and no Liquidity Event (IPO). Fred said: secondary transactions and cash payouts are two of the most obvious options.
So I responded: I threw together a crummy spreadsheet leading me to estimate that, to pay back $40M for the $10M funding, KS would need to be generating $6.5M/yr in (before-interest) profit. (To be able to pay the interest on the ReCap debt.)