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Accel is not in the business of publicly traded stock, they are in the business of high risk high return private investment. They invested $12.7 million in Face
by startupfounder 14y ago
Accel is not in the business of publicly traded stock, they are in the business of high risk high return private investment. They invested $12.7 million in Facebook and selling it for $1 Billion. They have already made their money and want to return it to their LPs, take their 20% commission of $200 million and raise another fund to do it all over again. Even if the stock went to $100 per share the marginal return on their investment vs. them spending their time investing in the next Facebook. By my calculation they have already netted $200,254,000 on this deal +/-.
EDIT: They will Net the $200m from this deal and then another ~$400m from future sales.
- calbear81 14y agoI agree with this in general but if the original investment was only $12.7 million, that's pocket change to Accel and I would think the LPs would have a say in whether or not they should hold or sell. For their next fund, they would have no problem raising several hundred million dollars without having to sell their FB stake given their stellar track record.
- kkwok 14y agoWhy should the LP's have a say in whether to sell or not? If they'd prefer to hold public Facebook stock, they could take their cut of the return and put it back in fb stock.