Re:Sell your startup for half a billion and get nothing (2021)
by LudwigNagasena on Tuesday March 05, 2024 @03:34AM
(#39600776)
So they raised $416M and sold for $465M. That's 12% ROI. The investors could just buy normal stocks and get similar returns in a year. I don't think there is anything remarkable about this case. It's not like they got a $100K grant and received nothing from a $500M sale.
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Re:Sell your startup for half a billion and get nothing (2021)
by agentgumshoe on Tuesday March 05, 2024 @05:19AM
(#39601520)
ROI depends on whether the company is profitable going forward too I'd imagine...
Re:Sell your startup for half a billion and get nothing (2021)
by pc86 on Tuesday March 05, 2024 @09:39AM
(#39604021)
Why would that matter? The investors got their cash and walked.
Re:Sell your startup for half a billion and get nothing (2021)
by blantonl on Tuesday March 05, 2024 @09:01AM
(#39603513)
This was almost loss transaction. That 12% ROI easily got eaten up in fees.
Re:Sell your startup for half a billion and get nothing (2021)
by vidarh on Tuesday March 05, 2024 @09:58AM
(#39604228)
Several years after their last funding rounds, so the amortized yearly returns would be well below market. Most of the general partners at the VC funds involved likely "lost" money (it'd have dragged down their carry), while the limited partners would have seen below-market returns...