3 ms·

750mm sounds crazy until you read that they have raised 119mm so far... thats only a 5.5x ROI if sold at that valuation. Perhaps, but that doesn't make $750 mi

• rjurney 17y ago
  It sort of does - if the money came from existing investors in a follow-on round. If they're just trying to keep it from being a down round for appearances sake - as in Ning would run out of money otherwise - they might be contributing in amounts equal to the existing cap table, so whatever the valuation they're only cramming themselves down, and it doesn't matter how much. I don't know what happened, but this makes sense. Most every investor is shoveling money into their existing deals right now to keep them afloat. I could issue a million shares, then sell you one for $750, and wallah, I'm valued at $750m. Neat trick eh? Someone slap me if my stock math is broken.
  • evgen 17y ago
    Remember that they are not just cramming themselves down, all of the common shareholders (like the employees) are getting a haircut.
  • neilc 17y ago
    It sort of does - if the money came from existing investors in a follow-on round. It didn't: "The money for this fifth Series E round comes from a Silicon Valley venture firm, Lightspeed Venture Partners ... [there was] interest by Ning in adding a top VC to its investor pool."
    • rjurney 17y ago
      +1 for superior reading comprehension.