Last fall, New York startup BillGuard was acquired by Prosper Marketplace for a price of between $25 million and $30 million, depending on future performance. In many ways it was an unremarkable exit. While the price was below BillGuard’s previous valuation in the $40 million range, it was hardly a fire sale. Series A investors even made money.
Still, for common shareholders–mostly founders and employees–and Series B investors it was a less happy outcome, at least initially.