4 ms·

Yes, the round closed the day before the acquisition, iirc.

• nikcub 15y ago
  that makes the IRR a crazy 1.33x10^3175% [1] funny that they would only need to let their investment ride into equivalent investments for another 21 days before reaching a return of 209 Trillion dollars, which is in excess of the total value of all stocks, bonds and currency in the world. [1] http://www.wolframalpha.com/input/?i=%3D+%281+billion+-+500+million%29+%5E+%28365%2F1%29+-+1 http://www.wolframalpha.com/input/?i=%3D+%281+billion+-+500+...
  • URSpider94 15y ago
    Odd as it may seem, this is not necessarily great for the VC's. Most VC funds only get to invest each dollar once; when it gets cashed out after an IPO or M&A event, the returns go back to the investors. I'm not sure if this money still counts as being under management for purposes of their 2% annual commission; if not, then it's almost certainly a bad deal.
    • pge 15y ago
      Many funds have provisions for recycling (ie calling a given dollar twice instead of just once) that address cases like this that are quick flips. One other note - for the first five years of a fund (typically), the 2 percent fee is calculated on committed capital not invested capital, so an event like this has no impact.
  • smackfu 15y ago
    I don't think they can sell the Facebook shares yet, so I don't know if that calculation is correct.