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Isn't the founders' holding severely diluted? They've gone through, iirc, over a dozen rounds of funding and own very little in the company
by puranjay 8y ago
Isn't the founders' holding severely diluted? They've gone through, iirc, over a dozen rounds of funding and own very little in the company
- Sohcahtoa82 8y agoEven owning 1% of a $15B company still makes you worth $150 million. Dumping even 2% of that $150M would give you enough to retire.
- draw_down 8y agoYeah. A billion here, a billion there, pretty soon you're talking about real money.
- ztratar 8y ago3M is not even close to enough for retirement in Silicon Valley. Also... 1.6M after taxes.
- Kye 8y agoI thought the usual track was Move to SV -> Get rich -> Retire somewhere cheaper. ~1 million is plenty almost anywhere on the planet. Especially if they go the FIRE route.
- opportune 8y agoyeah some guy who just sold a multi-billion dollar company is going to retire with a $40k/year withdrawal rate? lmao
- puranjay 8y ago$1M isn't plenty for everywhere. Even in India, $400-500k is what you would need to buy a new 3-4 bedroom apart in a good area of, say, New Delhi. In Mumbai, $1M is the bare minimum
- mattbreeden 8y agoWould they not get long term capital gains rates?
- vkou 8y agoYou don't have to retire in the Valley. Why would you want to retire in the Valley? Everything there optimizes for bilking outrageous sums of money from overworked young people who are getting paid said outrageous sums of money. Actually, I could think of dozens of places I'd rather retire in, over the Valley.
- adventured 8y agoThe two founders will each own between 3% and 4% of Lyft after the IPO (so $600m to $800m at a $20b market cap). Recode pegged the number at a combined ~7%. Even in a bad scenario in which the Lyft stock dumps in the 6-12 months post IPO, the founders will be very wealthy (consider that its value could collapse to $3.5b and their stakes are still worth roughly $100m each). More interestingly, despite the relatively small ownership stake they nearly majority vote control Lyft through dual-class shares with a very unusual 20 to 1 vote ratio versus the normal shares.