Lost in the shuffle of the July 4th holiday, the LogMeIn IPO produced one of the biggest returns for VCs this year—at least on paper.
Mind you, there have only been six VC-backed IPOs so far. But still…
LogMeIn (Nasdaq: LOGM) priced at $16 on July 1 and shot up to $20.02 by the end of the trading day. That was the second best debut of a VC-backed offering this year, behind only restaurant reservation service OpenTable (Nasdaq: OPEN), which rose over 59% on its first day.
Following the IPO, five venture firms collectively held 10.8 million shares worth over $209 million at yesterday’s closing price $19.32. In addition, three of the VCs sold shares in the IPO for proceeds of more than $21 million.
Factoring in the $25 million the VCs collectively put into the company, that means the VCs have seen an overall paper return of more than 9x. (Of course, shares currently held by the VCs are subject to a lock-up period, and the stock price can go up or down between now and then.)
Following the IPO, Prism VentureWorks was the company’s largest shareholder, with 3.9 million shares (or 17.6% of the total) valued at $75.3 million on July 7; Polaris Venture Partners was second with 2.94 million shares (13.28%) worth $56.8 million; 3TS Capital Partners was third with 1.99 million shares (9.01%) worth $38.4 million; Integral Capital Partners was fourth with 1.12 million shares (5.07%) worth $21.6 million; and Intel Capital was fifth with about 889,000 shares (4.02%) worth $17.2 million.
Separately, three firms sold shares in the IPO: 3TS sold 555,248 shares for $8.9 million; Polaris sold 462,860 shares for $7.4 million; and Integral Capital Partners sold 312,524 for $5 million.
I sought comment via email from Woody Benson, who represents Prism on LogMeIn’s board, but he didn’t get back to me, presumably because the company is still in a quiet period following its IPO.