DigitalOcean acquires Paperspace (YC W15) for $111M in cash
finance.yahoo.com
DigitalOcean acquires Paperspace (YC W15) for $111M in cash
1–10 of 98 posts
Re: DigitalOcean acquires Paperspace (YC W15) for $111M in cash
#2How much did Paperspace raise? Was the exit dilutive?
Seems it was a win all around. They raised 35M exited at 111M. Not. 10x win but not under water.
Re: DigitalOcean acquires Paperspace (YC W15) for $111M in cash
#3How much did Paperspace raise? Was the exit dilutive? Seems it was a win all around. They raised 35M exited at 111M. Not. 10x win but not under water. https://www.crunchbase.com/organization/paperspace
Roughly how much would the founders net
Re: DigitalOcean acquires Paperspace (YC W15) for $111M in cash
#4How much did Paperspace raise? Was the exit dilutive? Seems it was a win all around. They raised 35M exited at 111M. Not. 10x win but not under water. https://www.crunchbase.com/organization/paperspace
Roughly how much would the founders net
Hard to say from the outside. Most founding teams end up with around 20% of a company at IPO so you could use that as a reference point.
However, this company was a few stages before IPO so there could have been less dilution from investors - allowing the founders to get a bigger cut.
On the other hand, some investors have really aggressive terms that can screw founders in situations like this. For example, their contracts could stipulate that an investor gets the first $45m of any exit even if that investor only put $15m into the company.
Re: DigitalOcean acquires Paperspace (YC W15) for $111M in cash
#5How much did Paperspace raise? Was the exit dilutive? Seems it was a win all around. They raised 35M exited at 111M. Not. 10x win but not under water. https://www.crunchbase.com/organization/paperspace
Roughly how much would the founders net
To calculate that you'd need to know what they raised at.
Re: DigitalOcean acquires Paperspace (YC W15) for $111M in cash
#6Dillon here (CEO @ Paperspace, YCW15). I want to give a huge thanks to the YC community and all the support over the years. We have always admired DO and couldn't be happier to join forces!
Re: DigitalOcean acquires Paperspace (YC W15) for $111M in cash
#7Earlier quoted context omitted.
Roughly how much would the founders net
Hard to say from the outside. Most founding teams end up with around 20% of a company at IPO so you could use that as a reference point. However, this company was a few stages before IPO so there could have been less dilution from investors - allowing the founders to get a bigger cut. On the other hand, some investors have really aggressive terms that can screw founders in situations like this. For example, their con…
My impression is that those kinds of preference terms have been unusual over the past decade in SV.
Re: DigitalOcean acquires Paperspace (YC W15) for $111M in cash
#8People buying companies just to get their hands on some more Nvidia GPUs.
Re: DigitalOcean acquires Paperspace (YC W15) for $111M in cash
#9Dillon here (CEO @ Paperspace, YCW15). I want to give a huge thanks to the YC community and all the support over the years. We have always admired DO and couldn't be happier to join forces!
congrats, dude.
Re: DigitalOcean acquires Paperspace (YC W15) for $111M in cash
#10People buying companies just to get their hands on some more Nvidia GPUs.
Ain't nothing wrong with buying revenue (potential or actual), or a multiple bump ("we do VMs"->"we enable AI too!"). Go where the margin and demand is.