Union Square gets 5,000% return on Tumblr
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Union Square gets 5,000% return on Tumblr
1–10 of 72 posts
Re: Union Square gets 5,000% return on Tumblr
#2Mind that that's "only" 50x. Still not bad though.
Re: Union Square gets 5,000% return on Tumblr
#3Power law, big wins. This paid for the entire fund, and more.
Re: Union Square gets 5,000% return on Tumblr
#4Mind that that's "only" 50x. Still not bad though.
50x, unless I'm missing something. They invested ~$5MM and got $253MM back.
Re: Union Square gets 5,000% return on Tumblr
#5> Tumblr's employees will also do well. The company's first 10 employees will receive an average of $6.2 million in cash; the first 30 will receive an average of $3.3 million in cash, and the rest of the 178 employees will each receive $371,000.
Is it usual to announce these numbers for all employees with acquisitions like this?
Re: Union Square gets 5,000% return on Tumblr
#6> Tumblr's employees will also do well. The company's first 10 employees will receive an average of $6.2 million in cash; the first 30 will receive an average of $3.3 million in cash, and the rest of the 178 employees will each receive $371,000. Is it usual to announce these numbers for all employees with acquisitions like this?
No, but note that this information's not coming from Tumblr - it's coming from an analyst who claims it's based on some financing documents he obtained.
Whether you trust it or not is up to you.
Re: Union Square gets 5,000% return on Tumblr
#7> Tumblr's employees will also do well. The company's first 10 employees will receive an average of $6.2 million in cash; the first 30 will receive an average of $3.3 million in cash, and the rest of the 178 employees will each receive $371,000. Is it usual to announce these numbers for all employees with acquisitions like this?
These are all estimates from this article: http://business.time.com/2013/05/21/inside-yahoos-tumblr-dea...
Which in turn got them from a company called PrivCo: http://www.privco.com/
Who knows how accurate they are.
Re: Union Square gets 5,000% return on Tumblr
#8USV are such a positive force on the community, it gives me pleasure to see them do well.
This isn't just a 50x return on $5m cash/a good investment/ripe market/competent founder. It's a return on USV's approach to business: being open on their investment strategy and theories, having and voicing an opinion, and appreciating the tech as much as the business metrics.
Re: Union Square gets 5,000% return on Tumblr
#9According to PrivCo [http://goo.gl/AW7GD], here are all the payouts of the 1,100 mn:
$286 mn: USV
$231 mn: Spark Capital
$253 mn: David Karp
$176 mn: Sequoia
$88 mn: Greylock, Insight Ventures, DFJ
$66 mn: Employees (6% of the 1,100 mn)
The math adds up to 71% of Tumblr being owned by VCs. Also Bloomberg reported that David Karp asked for as much stock as Yahoo would give him, because he sees himself working on Tumblr for the next few decades. It also reflects the sentiment that Marco Arment's blogpost yesterday expressed.
“This is something I’ve been building for the last seven years and hope employs me 30 years from now."
Re: Union Square gets 5,000% return on Tumblr
#10According to PrivCo [ http://goo.gl/AW7GD ], here are all the payouts of the 1,100 mn: $286 mn: USV $231 mn: Spark Capital $253 mn: David Karp $176 mn: Sequoia $88 mn: Greylock, Insight Ventures, DFJ $66 mn: Employees (6% of the 1,100 mn) The math adds up to 71% of Tumblr being owned by VCs. Also Bloomberg reported that David Karp asked for as much stock as Yahoo would give him, because he sees himself working on Tum…
The notion of 30 year old websites seems incredibly alien to me, but I suppose there is no real reason why that should never happen.