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I'm curious how much equity founders have after such investment with so many investors? I know there's no standard rule here, but I don't know anything about in

by ay1n 11y ago

I'm curious how much equity founders have after such investment with so many investors? I know there's no standard rule here, but I don't know anything about investors, raising money etc., could someone give me few examples with real life numbers?

grinich 11y ago
Planet Labs has raised a total of $160.1 million in funding across 4 disclosed rounds.[1] I'm going to assume there was also an angel round. Here is some (super) rough math: | Round | $ in MM | post-$ | non-VC % | |-----------|----------|----------|----------| | Founding | - | - | 100 | | Angel | 1 | 10 | 90 | | Series A | 13.1 | 50 | 75 | | Series B | 52 | 225 | 58 | | Series C | 118 | 550 | 45 | Note this announcement is the "second closing" of the 95MM Series C from January[2], which means the terms are very likely identical. The WSJ reported the Series C valuation as "materially above" 500 million.[3] I picked these valuations out of thin air. The only "standard" thing I've seen is that most VC funds are structured for 20% minimum stake in Series A rounds. Later-stage rounds often target less ownership. The above calculation doesn't take into account any stock for employees. With that, I'd estimate the founders still collectively own about 30-35% of the company. This could also be totally wrong, since I have no idea what the real numbers are. But as an exercise, you get the idea. :) [1] https://www.crunchbase.com/organization/planet-labs https://www.crunchbase.com/organization/planet-labs [2] http://techcrunch.com/2015/01/20/planet-labs-95m/ http://techcrunch.com/2015/01/20/planet-labs-95m/ [3] http://blogs.wsj.com/venturecapital/2015/01/23/data-collective-tapped-its-new-growth-fund-for-planet-labs-deal/ http://blogs.wsj.com/venturecapital/2015/01/23/data-collecti...
- nedwin 11y ago
  If we forget about the percentages they own and focus on the value of their stock we see that their stock goes likes this: $0 $9m $37.5m $130.5m $247.5m I suspect that the founder ownership percentages are actually lower than you've suggested and that right now they own somewhere around 20 to 30% which is still valued at $110m to $165m.
  - grinich 11y ago
    Sure, share price is what you use to calculate the dollar value of the stock. But percentage is more useful for determine voting power. Is there a specific valuation here you think is too high an estimate?
    - nedwin 11y ago
      Maybe percentage determines voting power but there are plenty of mechanisms that can and are used to retain control at the equity percentages we are talking about.

by ay1n 11y ago

grinich 11y ago

Planet Labs has raised a total of $160.1 million in funding across 4 disclosed rounds.[1] I'm going to assume there was also an angel round. Here is some (super) rough math: | Round | $ in MM | post-$ | non-VC % | |-----------|----------|----------|----------| | Founding | - | - | 100 | | Angel | 1 | 10 | 90 | | Series A | 13.1 | 50 | 75 | | Series B | 52 | 225 | 58 | | Series C | 118 | 550 | 45 | Note this announcement is the "second closing" of the 95MM Series C from January[2], which means the terms are very likely identical. The WSJ reported the Series C valuation as "materially above" 500 million.[3] I picked these valuations out of thin air. The only "standard" thing I've seen is that most VC funds are structured for 20% minimum stake in Series A rounds. Later-stage rounds often target less ownership. The above calculation doesn't take into account any stock for employees. With that, I'd estimate the founders still collectively own about 30-35% of the company. This could also be totally wrong, since I have no idea what the real numbers are. But as an exercise, you get the idea. :) [1] https://www.crunchbase.com/organization/planet-labs https://www.crunchbase.com/organization/planet-labs [2] http://techcrunch.com/2015/01/20/planet-labs-95m/ http://techcrunch.com/2015/01/20/planet-labs-95m/ [3] http://blogs.wsj.com/venturecapital/2015/01/23/data-collective-tapped-its-new-growth-fund-for-planet-labs-deal/ http://blogs.wsj.com/venturecapital/2015/01/23/data-collecti...

nedwin 11y ago
If we forget about the percentages they own and focus on the value of their stock we see that their stock goes likes this: $0 $9m $37.5m $130.5m $247.5m I suspect that the founder ownership percentages are actually lower than you've suggested and that right now they own somewhere around 20 to 30% which is still valued at $110m to $165m.
- grinich 11y ago
  Sure, share price is what you use to calculate the dollar value of the stock. But percentage is more useful for determine voting power. Is there a specific valuation here you think is too high an estimate?
  - nedwin 11y ago
    Maybe percentage determines voting power but there are plenty of mechanisms that can and are used to retain control at the equity percentages we are talking about.