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0 pointsbirken11y ago0 comments

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.

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leroy_masochist11y 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)?

birkenOP11y 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_masochist11y ago

Makes sense -- thank you.

teej11y 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.

birkenOP11y 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.

aetherson11y ago

I would not cry if I got, say, 1% of an $11B company (that is to say: $110 million).

ChuckMcM11y ago

Anyone know if the founders took any money off the table?

birkenOP11y 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).

j / k navigate · click thread line to collapse

0 pointsbirken11y ago0 comments

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.

0 comments

leroy_masochist11y 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)?

birkenOP11y 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_masochist11y ago

Makes sense -- thank you.

teej11y 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.

birkenOP11y 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.

aetherson11y ago

I would not cry if I got, say, 1% of an $11B company (that is to say: $110 million).

ChuckMcM11y ago

Anyone know if the founders took any money off the table?

birkenOP11y ago

j / k navigate · click thread line to collapse