3 ms·
VC Funding Spelled Backwards
- simianstyle 18y agognidnuF CV Sorry, but i've been holding myself back from doing that for about half an hour now. I caved.
- mattmaroon 18y agoWhoops, clicked the down arrow but meant to click up. For what it's worth, consider yourself +2 karma.
- zurla 18y agothe MS offer was not that high when you factor in how many people work at xobni. i've heard some tech acquirers say they initially value a startup at $1M per engineer before factoring in the value of the actual product. xobni is up to what, 14 or 15 people now?
- aston 18y ago15 people, all engineers?
- rms 18y agoI'd actually be really curious what their engineer to executive to support staff ratio is.
- mattmaroon 18y agoTheoretically executive support staff has some value too. I mean, outside of the hacker crowd anyway, those people are viewed as useful.
- rms 18y agoOh, sure, I could use some support staff, but I could use hackers more.
- boris 18y ago"Had Xobni taken $1 million instead of 4, they’d all be buying beach houses right now. On the other hand, Microsoft might come back and offer the $40 or $50 million it would take to make the VCs agree (I think it would be a good idea for them to do so) and they’ll be buying beach house and Bentleys." Let's say an angel would invest at the same valuation as the VC, then for $1M they would get 12.5% of the company. That would mean that when acquired for $20M, founders are left with $17.5M. For VCs with 50% stake and $40M acquisition founders are left with $20M. Not sure where Bentley's come from.
- utnick 18y agoyou overestimate the price of bentleys
- mattmaroon 18y agoAngels would have invested 1m at a lower valuation than VCs. That's both the perk and the drawback of VC money. You can get more while giving up about the same amount of equity.
- Fuca 18y agoWhy MS just not go ahead and copy Xobni? it is not like they would need to get users, they are already there.