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Union Square gets 5,000% return on Tumblr

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Re: Union Square gets 5,000% return on Tumblr

#41

Post by pkmehta »

SilconValleyVC wrote: post #32
fredwilson wrote: post #27

Total garbage. There is not one fact in this privco thing that is close to right. The numbers are good but nowhere close to that good. This is the same firm that predicted Foursquare would be out of business this year which will also prove to be nonsense.

The Series A USV invested in was only $775,000 and was at $1/share according to privco and confirmed by docs I've seen. So how much did USV invest? Obviously Tumblr sold for over $200/share, so please do the math and show what's off? Is it a few percent, in which case what does that matter when you've made 5,000%? You should be proud of that! As a VC I'm envious Fred. But I've found the privco data reliable (but I'm…

SiliconValleyVC - this account has to be the worst attempt at astro-turfing I've seen in a while from a company employee or founder. Does anyone talk like this about a vendor (much less a data company) -- "I respect PrivCo from my working with their remarkably accurate data." Right right.

You're a SiliconValleyVC whose submission history is 2 privco articles. And your comment history references PrivCo multiple times and your love of them.

So perhaps you're just a really really happy VC client of a data tool or more likely you are here at the behest of your employer/are with the company and trying to salvage what must be a very bad day at the office - data company whose data gets called garbage.

On to your points to Fred:

1. If you've seen the docs, share them.

2. There was no ad-hominem attack. Fred called your data b.s. He has the #s so is in a good position to make that claim.

I can understand you're trying to save face for Privco after respected VC's Fred Wilson, Bijan Sabet have called you out. Plus, today, editors of 3 major tech publications called you out -- Jay Yarrow of Biz Insider, Eric Eldon of TechCrunch and Mike Isaac at AllThingsD all said Privco data and claims are incorrect and hyperbolic.

Pls don't insult us here with this very sad attempt at covering for your employer/company.

Re: Union Square gets 5,000% return on Tumblr

#42

Post by joshu »

pkmehta wrote: post #41
SilconValleyVC wrote: post #32

Earlier quoted context omitted.

The Series A USV invested in was only $775,000 and was at $1/share according to privco and confirmed by docs I've seen. So how much did USV invest? Obviously Tumblr sold for over $200/share, so please do the math and show what's off? Is it a few percent, in which case what does that matter when you've made 5,000%? You should be proud of that! As a VC I'm envious Fred. But I've found the privco data reliable (but I'm…

SiliconValleyVC - this account has to be the worst attempt at astro-turfing I've seen in a while from a company employee or founder. Does anyone talk like this about a vendor (much less a data company) -- "I respect PrivCo from my working with their remarkably accurate data." Right right. You're a SiliconValleyVC whose submission history is 2 privco articles. And your comment history references PrivCo multiple times…

I'm going to guess he's a shill for Privco.

Re: Union Square gets 5,000% return on Tumblr

#43

Post by vinaypai »

fredwilson wrote: post #27

Total garbage. There is not one fact in this privco thing that is close to right. The numbers are good but nowhere close to that good. This is the same firm that predicted Foursquare would be out of business this year which will also prove to be nonsense.

I don't have access to the original Privco report, but this article on Time http://goo.gl/iu1z3 cites it as saying the 178 employees are dvying up $66 million among themselves and goes on to say a couple of sentences later that the first 30 employees average out to $3.6 million... which adds up to $108 million.

Anyone with a basic understanding of math ought to recognize that their numbers are dubious. It's disappointing to see it echoed all over the web including publications like Time who should be expected to do some simple fact checking.

Re: Union Square gets 5,000% return on Tumblr

#44

Post by RockyMcNuts »

SilconValleyVC wrote: post #32
fredwilson wrote: post #27

Total garbage. There is not one fact in this privco thing that is close to right. The numbers are good but nowhere close to that good. This is the same firm that predicted Foursquare would be out of business this year which will also prove to be nonsense.

The Series A USV invested in was only $775,000 and was at $1/share according to privco and confirmed by docs I've seen. So how much did USV invest? Obviously Tumblr sold for over $200/share, so please do the math and show what's off? Is it a few percent, in which case what does that matter when you've made 5,000%? You should be proud of that! As a VC I'm envious Fred. But I've found the privco data reliable (but I'm…

RockyMcNuts: good sources tell me SelfDescribedVC got no bonus last year.

SelfDescribedVC: that's false.

PeanutGalleryPaparazzo: those sources have been reliable, if they're wrong, don't throw out ad-hominem attacks, just tell me how much you really made.

b*h please. Professional VCs don't anonymously troll top VCs.

(Account created 42 days ago, 2 submissions, both referencing PrivCo)

Re: Union Square gets 5,000% return on Tumblr

#45

Post by jonknee »

bluedino wrote: post #25
larrys wrote: post #15

Earlier quoted context omitted.

"the rest of the 178 employees will each receive $371,000." Interesting to keep in mind for anyone working for a startup as a metric. You work and have a chance, if the idea hits (to the tune of 1 billion) of making low to mid 6 figures. $371k is certainly nice but considering the amount of startups that not only don't succeed but don't succeed to the extent that Tumblr did ...

Imagine being at Instagram, $1bn and only what, 14 employees?

You would have ended up with a bunch of Facebook stock that immediately started to free fall before you could sign the documents.

Re: Union Square gets 5,000% return on Tumblr

#46

Post by ry0ohki »

michaelochurch wrote: post #21
dot wrote: post #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?

and the rest of the 178 employees will each receive $371,000. So they get a one-time mid-level banking bonus, and now they work for a completely different company and almost certainly in positions lower than what they used to have. VCs would quit given year-end bonuses like that.

They did get paid a salary, benefits, etc... they took almost none of the risk that would be worth a higher reward

Re: Union Square gets 5,000% return on Tumblr

#47

Post by justinbeaver »

fredwilson wrote: post #27

Total garbage. There is not one fact in this privco thing that is close to right. The numbers are good but nowhere close to that good. This is the same firm that predicted Foursquare would be out of business this year which will also prove to be nonsense.

perhaps even worse than privco's non-stop rubbish "research" is the naive reporting on this story without seeking a second source to verify "the facts". would it have pained the writer to at least request the so-called "financial documents"? such is the sad state of affairs in journalism these days (sigh).

Re: Union Square gets 5,000% return on Tumblr

#48

Post by kevando »

fredwilson wrote: post #27

Total garbage. There is not one fact in this privco thing that is close to right. The numbers are good but nowhere close to that good. This is the same firm that predicted Foursquare would be out of business this year which will also prove to be nonsense.

I'm curious what role Tumblr's investors - like you - play in a deal like this. David Karp, his vision, and his team are a huge part of the tumblr value. Does Yahoo! also benefit from the mentorship and experience that you guys provide?

Re: Union Square gets 5,000% return on Tumblr

#49

Post by danielharan »

fredwilson wrote: post #27

Total garbage. There is not one fact in this privco thing that is close to right. The numbers are good but nowhere close to that good. This is the same firm that predicted Foursquare would be out of business this year which will also prove to be nonsense.

Either way, congratulations :)

Re: Union Square gets 5,000% return on Tumblr

#50

Post by orangethirty »

fredwilson wrote: post #36
SilconValleyVC wrote: post #32

Earlier quoted context omitted.

The Series A USV invested in was only $775,000 and was at $1/share according to privco and confirmed by docs I've seen. So how much did USV invest? Obviously Tumblr sold for over $200/share, so please do the math and show what's off? Is it a few percent, in which case what does that matter when you've made 5,000%? You should be proud of that! As a VC I'm envious Fred. But I've found the privco data reliable (but I'm…

I take it personally when people write irresponsible garbage about our portfolio companies. I care about them and their teams a lot. Making money is nice but being a supportive and good investor is a lot better

To me, you are the first actual investor that has said something like this. My image of investors in general is tarnished from past dealings. Yet, I want to believe. I want to believe that there are investors out there who simply care about the people, about the goals. Who do not see an investment as merely a financial transaction, but as an addition to their own team. If this is really you, then congratulations. Its good to have people like you in the mess that is tech and SV.

Disclaimer: I don't need, nor am I looking for any kind of funding. These are sincere words.

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