Poptip Joins Palantir

Re:Poptip Joins Palantir by tedunangst on Tuesday July 29, 2014 @09:26PM (#8105960)

Re: dilution. If you started with 0.1% of $2m, that's $2000. If each round diluted by half, your 0.00005% of $9b is $4500.

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Re:Poptip Joins Palantir by grinich on Tuesday July 29, 2014 @11:02PM (#8106176)

FYI: it would be crazy if each round diluted you by half. I've never heard of that happening.

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Re:Poptip Joins Palantir by tedunangst on Tuesday July 29, 2014 @11:53PM (#8106279)

Worst case. Also made the math easy.

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Re:Poptip Joins Palantir by grinich on Wednesday July 30, 2014 @01:53AM (#8106630)

Easy but wildly incorrect due to the exponential factor.

For example, if you assume a 15% dilution over 11 fundraising rounds, then it's 0.0167% which is +$1.5MM at a $9B valuation.

at 20%: +730k

at 25%: +$380k

I picked 15% because it seemed a good middle ground. Seed rounds are often <15%, Series A/B is around 20-30%, and later rounds target <5-10%. Because Palantir did so many rounds, I would guess only a few were significantly (> 15%) dilutive.

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Re:Poptip Joins Palantir by bane on Tuesday July 29, 2014 @09:35PM (#8105969)

Thanks for the explanation, I hope that's worth it for the folks who've been hanging on there for years and years.

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