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Wow. 3MM raised, 119MM exit. 40x return, and they made that 3MM last 4 years from 2008-2012 with revenue. Congratulations!
by aditya 14y ago
Wow. 3MM raised, 119MM exit. 40x return, and they made that 3MM last 4 years from 2008-2012 with revenue. Congratulations!
- byrneseyeview 14y ago40x refers to the return to the investors. If investors own e.g. 30% (I am making this number up and have no knowledge of the situation), their return is ~12x.
- diego 14y agoIt's probably more like a 10x to 15x return, unless investors owned 100% of the company :)
- ChuckMcM 14y agoThe good news is that since the employees owned some we can be sure that they saw some of that 119M$. That being said their site died :-) [1] Random note: It seems to me that that KK would be the appropriate unit for millions (thousand-thousands) and MM would be Million Millions or (10^12, or trillions.
- sjtgraham 14y agoMille, i.e. Latin for a thousand. Thus MM = 1000 x 1000 = 1,000,000. I rarely see MM used to denote a million outside the financial world. I have never seen a job, for example listing remuneration as "circa 120M" meaning 120,000
- brudgers 14y agoIf you do the math, very few employees will retire. FU money @ $7 million requires about 6% ownership. And that's assuming their wasn't a high multiple liquidation preference for any of the investors. [Investors here: http://www.slideshare.net/about/investors http://www.slideshare.net/about/investors] That's not to say a couple of hundred thousand dollars for being an employee isn't bad. But the chef isn't going to become a millionaire.
- gordonbowman 14y agoKeep in mind the upside of LNKD stock. Still probably not enough to retire for most but the upside is substantial.
- fennecfoxen 14y agoThe upside potential of LNKD? Depends who you ask. http://caps.fool.com/Ticker/LNKD.aspx http://caps.fool.com/Ticker/LNKD.aspx 856 'Underperform' to 196 'Outperform'? Sounds like somebody is bearish! (disclaimer: as i'm sure is quite obvious the Motley Fool community KNOWS EVERYTHING and is NEVER WRONG. coughcough)
- nikcub 14y agothis would have cleared any liquidity hurdles, easily. it is a kick-ass outcome for the founders. the investors probably got 10x over 4 years.
- wtvanhest 14y agoI don't know about you, but if I made $500,000 on a company sale then got another job, that $500,000 would go a long way in helping me save for retirement or cut down bills. There is absolutely nothing wrong with shooting for a massive exit, but I don't think it is reasonable to hate on a multimillion dollar exit.
- gordonbowman 14y agoA big pay day for Venrock. They were the only institutional investor on the deal. Roughly 15x return on their $2.7mm in.
- nikcub 14y agoeither the founders accepted a really shitty investment offer or you don't know how to calculate returns
- paraschopra 14y agoWhat's your source of 3MM revenue for 2008-2012?
- gsharma 14y ago3M is not the revenue, how much they raised in total. His point is that they lasted 4 years with just raising 3M (+ whatever revenue they generated)