
VC Funding Spelled Backwards - breily
http://mattmaroon.com/?p=361
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simianstyle
gnidnuF CV

Sorry, but i've been holding myself back from doing that for about half an
hour now. I caved.

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mattmaroon
Whoops, clicked the down arrow but meant to click up. For what it's worth,
consider yourself +2 karma.

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boris
"Had Xobni taken $1 million instead of 4, they’d all be buying beach houses
right now. On the other hand, Microsoft might come back and offer the $40 or
$50 million it would take to make the VCs agree (I think it would be a good
idea for them to do so) and they’ll be buying beach house and Bentleys."

Let's say an angel would invest at the same valuation as the VC, then for $1M
they would get 12.5% of the company. That would mean that when acquired for
$20M, founders are left with $17.5M. For VCs with 50% stake and $40M
acquisition founders are left with $20M. Not sure where Bentley's come from.

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utnick
you overestimate the price of bentleys

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zurla
the MS offer was not that high when you factor in how many people work at
xobni. i've heard some tech acquirers say they initially value a startup at
$1M per engineer before factoring in the value of the actual product. xobni is
up to what, 14 or 15 people now?

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aston
15 people, all engineers?

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rms
I'd actually be really curious what their engineer to executive to support
staff ratio is.

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mattmaroon
Theoretically executive support staff has some value too. I mean, outside of
the hacker crowd anyway, those people are viewed as useful.

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rms
Oh, sure, I could use some support staff, but I could use hackers more.

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Fuca
Why MS just not go ahead and copy Xobni? it is not like they would need to get
users, they are already there.

