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Just applied to put $1k into a YC company that I was very impressed with. I hope this becomes the default for YC companies. Fuck the VC's - invite the public t
by wilfra 14y ago
Just applied to put $1k into a YC company that I was very impressed with.
I hope this becomes the default for YC companies. Fuck the VC's - invite the public to demo day and crowd fund the seed rounds!
Quick math: investing $1k into Facebook with the same terms would be worth over $8 million today. For Dropbox, over $600k. For an OMGPOP-sized exit, $25k.
- bthomas 14y agoAre there any estimates for if you put $1k into every company from a batch?
- deleted 14y ago[deleted]
- swalkergibson 14y agoCan you show your work on that math, please? I am at work and do not have the ability to go through it myself, but that seems too good to be true...
- wilfra 14y agoThese are just rough calculations and they ignore things like whether the valuation is pre or post-money and dilution from additional funding etc, but it gives a ballpark idea of potential returns: $1,000 investment at $8,000,000 valuation = 0.0125% Facebook valuation today of $63 billion x 0.000125 = $7.87 million (was a little off) Dropbox valuation currently at least $5 billion (they raised at a $4 billion valuation in 2011) x 0.000125 = $625k OMGPOP sold for $200 million x 0.000125 = $25k.
- swalkergibson 14y agoOkay, thank you. I was wondering if it was just straight division.
- csomar 14y agoFacebook raised a total of $16B. In each round, you get your share diluted. You'll need the history of the funds raising and the dilution your share is taking, but I guess, you'll hardly reach $1m or even $100K after all dilutions take place.
- wilfra 14y agoPeter Thiel invested $500k for 10% and was left with only 2.5% at IPO, so it looks like dilution is indeed stronger than I assumed. At that dilution rate, $1k in Facebook would be worth "only" about $1.9 million today.