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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
by 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 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.