The one factor rarer than a unicorn is a launched unicorn.
At ProWellTech, we cowl a whole lot of startup funding, however we not often have the chance to cowl exits. This week was an exception, nonetheless, because it was exitpalooza as Affirm, Roblox, Airbnb, and Want all filed requests to go public. With DoorDash’s IPO unveiled final week, that’s greater than $ 100 billion in free float potential headed for public markets as we head in direction of the top of a tumultuous 2020.
All of those releases elevate a easy query: who made the cash? Which VCs entered a few of the largest startups of the last decade early? Who’s going to purchase a brand new household yacht for the vacations (or, like, a pleasant yurt for when Burning Man reboots)? The excellent news is that wealth is spreading round at the least a few enterprise capital companies, though there are actually a handful of companions who want to a very good verify within the mail than others.
So let’s dive in.
I’ve lined in depth the investor returns of DoorDash and Airbnb, so if you wish to know extra about these particular person returns, be happy to take a look at these analyzes. However let’s take a extra panoramic perspective on the returns of those 5 corporations as an entire.
First, let’s check out the founders. These are among the many finest startups ever constructed, and due to this fact unsurprisingly, the founders have accomplished fairly nicely for themselves. However there are fairly massive variations which might be attention-grabbing to notice.
First, Airbnb – by far – has the most effective return profile for its founders. Brian Chesky, Nathan Blecharczyk and Joe Gebbia collectively personal almost 42% of their firm on the IPO, after elevating billions in enterprise capital. The explanation for his or her success is straightforward: Airbnb might have had some powerful early innings when it was simply getting began, however as soon as it did, its ranking skyrocketed. This helped restrict dilution in its early progress cycles and finally protected their possession within the firm.
David Baszucki of Roblox and Peter Szulczewski of Want each did nicely: they personal 12% and roughly 19% of their corporations respectively. Szulczewski co-founder Sheng “Danny” Zhang, who’s Want’s CTO, owns four.9%. Eric Cassel, the co-founder of Roblox, didn’t disclose possession within the firm’s S-1 submitting, indicating he doesn’t personal greater than 5% (the SEC reporting threshold).
DoorDash’s the founders personal rather less of their firm, primarily because of the money-eating nature of that enterprise and the massive variety of co-founders of the corporate. CEO Tony Xu owns 5.2% whereas his two co-founders Andy Fang and Stanley Tang every have four.7%. A fourth co-founder, Evan Moore, didn’t disclose the totals of his stake within the firm’s submitting.
Lastly, we’ve got Affirm . Affirm didn’t present the total share rely for the corporate, so it’s tough right now to get an entire image of the property. It’s additionally significantly tough as a result of Max Levchin, who based Affirm, was a widely known multi-time entrepreneur who had a singular fairness construction from the beginning (lots of the enterprise capital companies on the cap desk even have the identical proportions of widespread inventory and privileged). Levchin has extra shares mixed than any of its single VC investor – 27.5 million shares, in comparison with the second largest investor, Jasmine Ventures (a unit of the GIC of Singapore) at 22 million shares.