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Somebody please correct me, because it sounds like they're saying a $40m investment got them to a $1b valuation, which would mean the investors (Sequoia, Blackb
by clusmore 9y ago
Somebody please correct me, because it sounds like they're saying a $40m investment got them to a $1b valuation, which would mean the investors (Sequoia, Blackbird and Felicis) got 4% between them? Why would they take such little equity?
- adventured 9y agoIf that's all correct, it's because it was what they could get for now. It'd likely be just to wet their beak, get an inside track, form a relationship, and they're looking to get more in future rounds. Sometimes companies that aren't desperate for outside funding will do a slower walk-up on partnerships with VCs, which I think can make a lot of sense if you have the luxury to do it.
- bigiain 9y agoIn the article the cofounder says it was "an offer we couldn't refuse". I guess she meant in a "You'll give us _how_ much for less than 5%??? You're joking? No? DONE!" way, rather than a "Nice business you've got here, it'd be a pity if anything happened to it." or a "We know where your children go to school" kind of way...