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So they raised $416M and sold for $465M. That's 12% ROI. The investors could just buy normal stocks and get similar returns in a year. I don't think there is an
by LudwigNagasena 3y ago
So they raised $416M and sold for $465M. That's 12% ROI. The investors could just buy normal stocks and get similar returns in a year. I don't think there is anything remarkable about this case. It's not like they got a $100K grant and received nothing from a $500M sale.
- agentgumshoe 3y agoROI depends on whether the company is profitable going forward too I'd imagine...
- pc86 3y agoWhy would that matter? The investors got their cash and walked.
- blantonl 3y agoThis was almost loss transaction. That 12% ROI easily got eaten up in fees.
- vidarh 3y agoSeveral years after their last funding rounds, so the amortized yearly returns would be well below market. Most of the general partners at the VC funds involved likely "lost" money (it'd have dragged down their carry), while the limited partners would have seen below-market returns...