8 ms·
Biggest thing I noticed is that the cofounders only own a little more than 1m shares each, which is less than .5% each! Painful amount of dilution....wow.
by randomacct3847 8y ago
Biggest thing I noticed is that the cofounders only own a little more than 1m shares each, which is less than .5% each!
Painful amount of dilution....wow.
- nevir 8y agoMight be a conscious choice?
- randomacct3847 8y agoWell yes they chose to dilute themselves every time they accepted a new round of funding, but that is much smaller than I ever imagined
- toomuchtodo 8y agoAnything is better than zero.
- nemo44x 8y agoConscious in that they had to sell large pieces of the pie to fuel growth with all the cash burn that has entailed.
- beering 8y agoWere the cofounders able to cash out shares previously? Maybe they took some chips off the table?
- IAmGarrett 8y agoCrunchbase lists 19 funding rounds. They've gone through the ringer.
- Fordec 8y agoStill, a $150M-90M personal net worth at the 18B-30B valuation window. They're not going to starve either.
- randomacct3847 8y agoIdk. I’m very bearish on Lyft. It’s a pure bet on US ridesharing. They didn’t expand internationally (now those markets are saturated) and didn’t get into delivery (Uber Eats alone is worth 5-7b).
- opportune 8y agoDo you think ridesharing is just going to die as a product or do you think it will become easily commoditized and all margins will essentially disappear? I think it's going to be around for at least another 10-15 years, and considering how much money uber and lyft had to burn to get to where they are now, I feel like it will be quite hard for competitors to capture relevant amounts of market share in the US
- randomacct3847 8y agoThe business is clearly not sustainable..it’s not that there’s changes in demand but the company will literally run out of money in a very short amount of time unless something drastically changes with their business model
- simonebrunozzi 8y agoThey probably de-risked their stake with some buyback during some of the rounds.
- pastor_elm 8y agoyou could have made that much with a few good crypto choices
- ceejayoz 8y agoSure, or by picking the right Powerball numbers.
- danielvf 8y agoYeah, this shows Lyft as having gone through ten rounds of funding with the last one being a "Series I" round. I've not seen that too often before!
- adjkant 8y agoI read that as "Series 1" and had to do a double take.
- Ozzie_osman 8y agoThe S-1 notes a lot of RSUs and options outstanding, that I assume are owned by the founders (and employees). So I assume when those kick in it'll be more than that.
- xiaolingxiao 8y agoAre you looking at page 192? Logan Green(1) 1,180,329 John Zimmer(11) 1,180,329 Ben Horowitz(5) 15,040,924 So the last line is 15million common stock held by A16Z
- OiNG 8y agothats only shares owned though. page 169 shows that Logan Green also has 3.5M in vested (unexercised) options and about 2M in unvested options.
- enra 8y agoAlso suspect there has been some secondaries where early investors, founders and early employees have sold some of their shares to late stage investors.
- JumpCrisscross 8y ago> Painful amount of dilution Lyft had a modern secondaries policy. Many early people sold shares.
- prostoalex 8y agoSecondary sales is existing shares changing hands, there's no dilution.
- JumpCrisscross 8y ago> Secondary sales is existing shares changing hands, there's no dilution Sorry for being unclear. I was positing an alternative mechanism, apart from dilution, through which the founders could have ended up with a small share of the company.
- spullara 8y agoThis isn't accurate. He has another ~6M shares of class B, look at footnote (1) for his holdings: "Consists of (i) 4,663,809 shares of Class B common stock held by El Trust dated August 3, 2015, for which Mr. Green serves as trustee, (ii) 675,564 shares of Class B common stock held by The Green 2014 Irrevocable Trust dated June 12, 2014, for which Mr. Zimmer serves as trustee, (iii) 360,979 shares of Class B common stock held by The Logan Green 2016 Annuity Trust, for which Mr. Green serves as trustee, (iv) 360,979 shares of Class B common stock held by The Eva Green 2016 Annuity Trust, for which Mr. Green’s spouse serves as trustee, (v) shares of Class B common stock issued pursuant to the Founder Option Net Exercises and (vi) 1,180,329 shares of Class A common stock underlying RSUs for which the time-based vesting condition would be satisfied within 60 days of December 31, 2018 and assuming the satisfaction of the performance-based vesting condition. Subsequent to December 31, 2018, a portion of the shares described in this footnote were transferred between the trusts described in this footnote for estate planning purposes."
- jamesfzhang 8y agoThis is incorrect. The S-1 shows asterisks for the co-founders and are likely just placeholders. In the previous S-1, it showed that they owned roughly 7% together. https://twitter.com/MikeIsaac/status/1101542615042801664 https://twitter.com/MikeIsaac/status/1101542615042801664