4 ms·
Just to clarify, it's not an 80x return or even close. I think you may have gotten that by taking the money in ($250k) and looking at the exit price ($20mln).
by rafaelc 16y ago
Just to clarify, it's not an 80x return or even close. I think you may have gotten that by taking the money in ($250k) and looking at the exit price ($20mln).
The truth is that if the round was priced, then the investors took call it 25% of the company, meaning the post-money was $1mln and thus at a $20 mln exit there was a 20x return... which of course is still pretty good.
- _pius 16y agoGreat point, I did some quick irrationally exuberant math and that's how I got the 80x. :)
- rythie 16y agoDoes anyone know what ycombinator got from this $0.4m to $2m (based on 2% to 10%)? or was it diluted in the later round?
- lyime 16y agoPretty sure YCombinator's stake would be diluted, unless the 250k was raised part of the YC round. Which is possible but unlikely.
- rythie 16y agoCrunchbase says the 250k round was only 2 months later, so maybe no dilution? http://www.crunchbase.com/company/280-north http://www.crunchbase.com/company/280-north