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"FanDuel founders to receive no cash from sale to Paddy Power Betfair" https://news.ycombinator.com/item?id=17485246 https://news.ycombinator.com/item?id=17485

"FanDuel founders to receive no cash from sale to Paddy Power Betfair" https://news.ycombinator.com/item?id=17485246 https://news.ycombinator.com/item?id=17485246 (July 8, 2018) Shamrock Capital Advisers and Kohlberg Kravis Roberts are the two mentioned investors, I believe.

fnbr 3y ago
Private equity firms. I’d never take money from them.
lupire 3y ago
Gambling company should know the house always wins. If I read crunchbase correctly FanDuel got $350M in funding by 2015, and sold for $465M 9 years later, for 33% ROI, or about 3%/yr. Founders don't deserve anything just for managing to hold on to investor capital and not lose it. Investing money at below market rates is not an achievement. Founders and employees weren't robbed. Also, OP is just a bad ad.
- hn_throwaway_99 3y ago
  Your timing is wrong here, which breaks your calculations. I read some other articles that said FanDuel got $75 million in 2014 and $275 million in 2015, and then they sold in 2018, so not sure where you're getting your "9 years" from.
  - quickthrower2 3y ago
    Still not great ROI.
    - zen928 3y ago
      A moving goalpost isn't a great argument either.
      - quickthrower2 3y ago
        SPY is beta roi, and it probably did worse than that.
  - lupire 3y ago
    I apologize. I misread something as saying the sale was this year. So the return was about 10%/yr, which is decent but not "make me a multi-multimillionaire". I presume everyone working got cash during their tenure, not just unpreferred stock. The claim that the valuation was artificially deflated due to conflict of interest seems stronger than the concern about liquidation preferences. FanDuel's 10x valuation growth from 2015-2020 backs up the charge of deflation. https://www.wsj.com/articles/fanduel-founders-former-employees-sue-over-getting-nothing-in-deal-11582663343 https://www.wsj.com/articles/fanduel-founders-former-employe...

fnbr 3y ago

Private equity firms. I’d never take money from them.

lupire 3y ago

Gambling company should know the house always wins. If I read crunchbase correctly FanDuel got $350M in funding by 2015, and sold for $465M 9 years later, for 33% ROI, or about 3%/yr. Founders don't deserve anything just for managing to hold on to investor capital and not lose it. Investing money at below market rates is not an achievement. Founders and employees weren't robbed. Also, OP is just a bad ad.

hn_throwaway_99 3y ago
Your timing is wrong here, which breaks your calculations. I read some other articles that said FanDuel got $75 million in 2014 and $275 million in 2015, and then they sold in 2018, so not sure where you're getting your "9 years" from.
- quickthrower2 3y ago
  Still not great ROI.
  - zen928 3y ago
    A moving goalpost isn't a great argument either.
    - quickthrower2 3y ago
      SPY is beta roi, and it probably did worse than that.
- lupire 3y ago
  I apologize. I misread something as saying the sale was this year. So the return was about 10%/yr, which is decent but not "make me a multi-multimillionaire". I presume everyone working got cash during their tenure, not just unpreferred stock. The claim that the valuation was artificially deflated due to conflict of interest seems stronger than the concern about liquidation preferences. FanDuel's 10x valuation growth from 2015-2020 backs up the charge of deflation. https://www.wsj.com/articles/fanduel-founders-former-employees-sue-over-getting-nothing-in-deal-11582663343 https://www.wsj.com/articles/fanduel-founders-former-employe...