On: Bird Acquires Scoot

[minimaxir]

The purchase price was apparently about $25M, which I'm assuming is not a 10x exit (the exact amount they raised is unclear).

https://twitter.com/Katie_Roof/status/1138913835606089729

[freewilly1040 → minimaxir]

As per the linked article they raised $47M

[omarchowdhury → freewilly1040]

Then it's likely the founders and team walked away with nothing from the sale.

[doctorcroc → omarchowdhury]

"The real windfall was the friends and memories we made along the way"

[tyre → omarchowdhury]

Yes and no. They wouldn't have gotten any of the $25m but they would have negotiated a comp package from Bird well above what they'd have gotten for being hired.

[eanzenberg → tyre]

Sux for their employees, though.

[Ecco → omarchowdhury]

Well, if both those numbers are right, they should be entitled to a share of the -$22M value they created. So I hope for them they walked away with nothing from the sale!

[robhunter → Ecco]

Likely not - venture capital investments have at least 1x liquidation preferences. The founders likely got nothing.

[throw03172019 → Ecco]

Why would you want them to walk away with nothing?

[likpok → throw03172019]

Because GP is suggesting that they created -$22M of value. So walking away with 0 means that they're collecting much more value than they created.