4 ms·

Can 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 ago
  These 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 ago
    Okay, thank you. I was wondering if it was just straight division.
  • csomar 14y ago
    Facebook 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 ago
      Peter 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.