Doubling your investment in six months is pretty good, but VCs would much rather wait three or four years and get 20 times their investment. Since it's a minor

Doubling your investment in six months is pretty good, but VCs would much rather wait three or four years and get 20 times their investment. Since it's a minority of companies that turn a profit for their investors, a Parakey-scale success is not the kind of thing that VCs dream about. $4 million is probably less than Sequoia invests in most of its companies, so it's certainly less than they're hoping to get out. If they turned a $2 million profit, that's a piddling 1% return for a $200 million fund. This is a really interesting case of founders turning the tables on VCs. When there's a lop-sided outcome, it's usually, from what I gather, the VCs who come out on top. I wonder how much of the uniqueness of this had to do with Blake and Joe's high profile (and their presumably resultant ability to get unusually favorable terms from investors).