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Perhaps I'm misreading things, but it says Sequoia pumped in 196 million, but its stock value of equity at launch will only be worth 150 million. Does that mean
by eggbrain 14y ago
Perhaps I'm misreading things, but it says Sequoia pumped in 196 million, but its stock value of equity at launch will only be worth 150 million. Does that mean they will be 'losing' money on the investment, until the stock goes up?
- eshrews 14y agoI read it as meaning the 196 million came from a combination of Sequoia Capital, General Catalyst Partners and Accel Partners, so I think they are still making money.
- eggbrain 14y agoThat made much more sense, I saw it as 196mm from Sequoia (of the 223mm raised total) with the rest coming from the other VC's.
- rdl 14y agoYou're misreading, I think. They're offering $100mm in new stock at IPO, but they are only offering x% of the company in that IPO. So the total market cap is $100mm/x%, about $1b. (I'm going to cheat and read the filing and then change X to the correct value, but I think it is 10%).
- comatose_kid 14y agoWouldn't that depend on what percentage of the company they are offering? I believe they have ~26 million shares total (from a previously filed S-1), and are offering 4 million...