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By taking $367m at $11b valuation, they have given away ~ 3.33% in this round. You may work backwards for previous rounds. For initial rounds with no public va

by amitutk 12y ago

By taking $367m at $11b valuation, they have given away ~ 3.33% in this round. You may work backwards for previous rounds. For initial rounds with no public valuation info, you may assume 25% of the company was given away in each round.

birken 12y ago
Yeah, assuming all founders started out with 33%, they'd probably have 5-10% right now, probably closer to 5%. Best case scenario would be: 33% * (75% angel) * (75% series A) * (75% series B) * (85% series C) * (95%^4 Series D-G) = ~10% It could probably go down as far as 4 or 5% depending on how big option pools were and just how much dilution was in the earlier rounds.
- ChuckMcM 12y ago
  Anyone know if the founders took any money off the table?
  - birken 12y ago
    I know nothing about their specific situation but based on this many rounds at this size they've almost certainly had the opportunity, and if they chose not to that would be very risky (and probably stupid).
- teej 12y ago
  I think it's less then that. Pinterest's early days were rough, and I heard that their B or C round was on unfavorable terms just to keep the lights on before they blew up.
  - birken 12y ago
    Well a worst case scenario might be something like: 33% * (66% seed funding) * (66% angel round) * (60% series A) * (60% series B) * (70% series C) * (85% series D) * (90%^2 series E/F) * (95% series G) ~= 2.4% Still > 2% of an 11B company isn't bad.
    - aetherson 12y ago
      I would not cry if I got, say, 1% of an $11B company (that is to say: $110 million).
- leroy_masochist 12y ago
  > Best case scenario would be: 33% * (75% angel) * (75% series A) * (75% series B) * (85% series C) * (95%^4 Series D-G) = ~10% Doesn't this assume that the earlier investors either didn't get pro rata rights (unlikely) or didn't choose to exercise them (conceivable for later rounds)?
  - birken 12y ago
    When funding is announced the amount put in via pro rata rights would be included in whatever the total that is announced. If a startup said they raised $10 million led by XYZ VC, that means that XYZ VC probably put in $5-7.5 million, and the rest would be filled with other investors and previous investors.
    - leroy_masochist 12y ago
      Makes sense -- thank you.
sharkweek 12y ago
Pulled valuation data for each round from the pitchbook.com platform: http://i.imgur.com/OfBDZz0.png http://i.imgur.com/OfBDZz0.png Let me know if you want to see any specific cap tables, happy to pull those out.

by amitutk 12y ago

birken 12y ago

Yeah, assuming all founders started out with 33%, they'd probably have 5-10% right now, probably closer to 5%. Best case scenario would be: 33% * (75% angel) * (75% series A) * (75% series B) * (85% series C) * (95%^4 Series D-G) = ~10% It could probably go down as far as 4 or 5% depending on how big option pools were and just how much dilution was in the earlier rounds.

ChuckMcM 12y ago
Anyone know if the founders took any money off the table?
- birken 12y ago
  I know nothing about their specific situation but based on this many rounds at this size they've almost certainly had the opportunity, and if they chose not to that would be very risky (and probably stupid).
teej 12y ago
I think it's less then that. Pinterest's early days were rough, and I heard that their B or C round was on unfavorable terms just to keep the lights on before they blew up.
- birken 12y ago
  Well a worst case scenario might be something like: 33% * (66% seed funding) * (66% angel round) * (60% series A) * (60% series B) * (70% series C) * (85% series D) * (90%^2 series E/F) * (95% series G) ~= 2.4% Still > 2% of an 11B company isn't bad.
  - aetherson 12y ago
    I would not cry if I got, say, 1% of an $11B company (that is to say: $110 million).
leroy_masochist 12y ago
> Best case scenario would be: 33% * (75% angel) * (75% series A) * (75% series B) * (85% series C) * (95%^4 Series D-G) = ~10% Doesn't this assume that the earlier investors either didn't get pro rata rights (unlikely) or didn't choose to exercise them (conceivable for later rounds)?
- birken 12y ago
  When funding is announced the amount put in via pro rata rights would be included in whatever the total that is announced. If a startup said they raised $10 million led by XYZ VC, that means that XYZ VC probably put in $5-7.5 million, and the rest would be filled with other investors and previous investors.
  - leroy_masochist 12y ago
    Makes sense -- thank you.

sharkweek 12y ago

Pulled valuation data for each round from the pitchbook.com platform: http://i.imgur.com/OfBDZz0.png http://i.imgur.com/OfBDZz0.png Let me know if you want to see any specific cap tables, happy to pull those out.