If every Heroku employee would get an equal share from the restricted stock, that means ~ $1M in Salesforce shares per employee. Congrats!
Salesforce Buys Heroku (YC W08) For $212 Million In Cash
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Re: Salesforce Buys Heroku (YC W08) For $212 Million In Cash
#12Wow. Didn't expect that. Didn't they just do some more capital raising themselves?
Re: Salesforce Buys Heroku (YC W08) For $212 Million In Cash
#13I'm glad the Heroku guys got a well deserved exit like this. It also makes me more confident to develop on the platform.
Can you explain why, it makes you more confident? (genuinely interested)
Re: Salesforce Buys Heroku (YC W08) For $212 Million In Cash
#14Biggest YC exit so far?
By an order of magnitude I think because 280 North was the last biggest one for $20M.
Re: Salesforce Buys Heroku (YC W08) For $212 Million In Cash
#15AFAIK Ycombinator invests about 15K for 6%. That 6% would now be 12 million. That's a 800x ROI. Nice :)
Re: Salesforce Buys Heroku (YC W08) For $212 Million In Cash
#16I'm glad the Heroku guys got a well deserved exit like this. It also makes me more confident to develop on the platform.
Can you explain why, it makes you more confident? (genuinely interested)
I know for my clients they would just like the name recognition that it brings. Selling someone on something they are familiar with is a lot easier.
Re: Salesforce Buys Heroku (YC W08) For $212 Million In Cash
#17AFAIK Ycombinator invests about 15K for 6%. That 6% would now be 12 million. That's a 800x ROI. Nice :)
I imagine YC's share will have been diluted quite a bit, but no doubt it's a great ROI.
Re: Salesforce Buys Heroku (YC W08) For $212 Million In Cash
#18This is great news for Heroku and YC (congratulations folks!). That said, does anyone have any insights on why exactly SalesForce would buy Heroku? What is the business rationale?
"This is Salesforce’s fifth acquisition this year. Earlier purchases include Activa Live, Sitemasher and Jigsaw. Salesforce.com also spent $170 million to fully acquire its Japanese subsidiary, Salesforce Japan."
Anyone see a pattern? I don't, but then I am not that business savvy.
Re: Salesforce Buys Heroku (YC W08) For $212 Million In Cash
#19heroku 94%
pg 6% (early 2008)
---
$3M Series A (mid 2008) Assuming a $2M pre-money:
heroku 37.6%
pg 2.4%
series A 60%
---
$10M Series B (2010) Assuming a $5M pre-money:
heroku 12.5%
pg 0.8%
series A 20%
series B 66.6%
---
$212M Exit:
heroku $26.5M
pg $1.7M
series A $42.4
series B $141.3
---
result:
series A $3M -> $42.4M // 14X in 2.5 years
series B $10M -> $141M // 14X in 1 year
pg $17K -> $1.7M // 100X in 3 years
All the pre-money valuations are guesstimates/fiction.
Re: Salesforce Buys Heroku (YC W08) For $212 Million In Cash
#20Anyone know what this means for Heroku? I love their service and I'd really hate to see it depart from what it is. I'm really happy for the Heroku guys, but I'm also kind of nervous because I can think of so many ways Salesforce can screw this up.
“The next era of cloud computing is social, mobile and real-time. I call it Cloud 2 ,” said Marc Benioff, chairman and CEO, salesforce.com I don't think we have anything to worry about...
I do think we have something to worry about when management type milks terms like "web 2.0" and now "Cloud 2.0" and "social".