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A quick search shows Garg's net worth is ~4B. Despite previous actions he deserves some amount of respect IMO for putting his own money on the line here.

by dh5 4y ago

ilrwbwrkhv 4y ago
The good ol' Elon Musk strategy
PaywallBuster 4y ago
Could be based on the valuation of the company based on the latest funding round Which could be tanking as we speak I don't see any news of the SPAC merge to have succeeded (estimated for Q4 21) and this article shows they just laid off 1/3 of staff https://therealdeal.com/2022/03/15/future-city-better-coms-troubles-worsen/ https://therealdeal.com/2022/03/15/future-city-better-coms-t...
ekianjo 4y ago
> net worth is ~4B net worth is not the same as liquidity
- BorisTheBrave 4y ago
  Net worth is the more relevant value for a loan guarantee.
  - hn_throwaway_99 4y ago
    But I'd assume a huge amount of that net worth is due to Better.com's valuation. Valuation is, of course, just the amount the most recent investors paid for their shares, times the total number of shares. And those most recent investors include Softbank, who also gave the founder the loan. Seems like a pretty scary loop.
  - reitzensteinm 4y ago
    If Better can't itself afford to pay the loan back, bringing the personal guarantee into play, what value will the equity have? Net worth is an abstraction that's generally useful to reason about outcomes, but it's a leaky abstraction.
    - _fat_santa 4y ago
      One would assume Softbank made sure that the debt was collateralized with something other than Better.com shares. I'm sure a good chunk of that 750M is collateralized with better.com shares but I'd be willing to bet they made him put some other stock/investments on the line.
      - jmvoodoo 4y ago
        If softbank believes in Better, but not necessarily in Garg, then having him personally guarantee the loan against his own shares is an easy way to push him out cleanly if things go south.
  - cyanydeez 4y ago
    Unless that loan underpins the value
snypher 4y ago
Hard to respect when losing $750m would still leave you a billionaire.

A quick search shows Garg's net worth is ~4B. Despite previous actions he deserves some amount of respect IMO for putting his own money on the line here.

by dh5 4y ago

A quick search shows Garg's net worth is ~4B. Despite previous actions he deserves some amount of respect IMO for putting his own money on the line here.

ilrwbwrkhv 4y ago

The good ol' Elon Musk strategy

PaywallBuster 4y ago

Could be based on the valuation of the company based on the latest funding round Which could be tanking as we speak I don't see any news of the SPAC merge to have succeeded (estimated for Q4 21) and this article shows they just laid off 1/3 of staff https://therealdeal.com/2022/03/15/future-city-better-coms-troubles-worsen/ https://therealdeal.com/2022/03/15/future-city-better-coms-t...

ekianjo 4y ago

> net worth is ~4B net worth is not the same as liquidity

BorisTheBrave 4y ago
Net worth is the more relevant value for a loan guarantee.
- hn_throwaway_99 4y ago
  But I'd assume a huge amount of that net worth is due to Better.com's valuation. Valuation is, of course, just the amount the most recent investors paid for their shares, times the total number of shares. And those most recent investors include Softbank, who also gave the founder the loan. Seems like a pretty scary loop.
- reitzensteinm 4y ago
  If Better can't itself afford to pay the loan back, bringing the personal guarantee into play, what value will the equity have? Net worth is an abstraction that's generally useful to reason about outcomes, but it's a leaky abstraction.
  - _fat_santa 4y ago
    One would assume Softbank made sure that the debt was collateralized with something other than Better.com shares. I'm sure a good chunk of that 750M is collateralized with better.com shares but I'd be willing to bet they made him put some other stock/investments on the line.
    - jmvoodoo 4y ago
      If softbank believes in Better, but not necessarily in Garg, then having him personally guarantee the loan against his own shares is an easy way to push him out cleanly if things go south.
- cyanydeez 4y ago
  Unless that loan underpins the value

snypher 4y ago

Hard to respect when losing $750m would still leave you a billionaire.