Anyone have any ketchup for my plate of crow?
You may recall that I wrote a post on May 13 entitled “Why It Sucks to Be a VC.” I ran some numbers based on the expected price OpenTable’s IPO ($13 per share) and found that the 12.5 million shares held by the VCs would be worth about $162 million. Given that they had collectively invested about $69 million in the online restaurant reservation service, the VCs were looking at a potential return multiple of 2.36.
That was then. Today, OpenTable (Nasdaq: OPEN) priced at $20 per share and rocketed to $31.89 by the end of the day in what Reuters reports as the best first-day performance for a U.S. company in 18 months. As a group, the VCs are now looking at a potential multiple of 5.78x.
Mind you, the VCs won’t be able to sell the stock for at least six months, so all of this is academic. But let’s take a look at how they’d do if, in six months, the stock was trading for $31.89 per share and all the VCs cashed out. The top three VC shareholders are looking pretty darn good:
• Benchmark Capital, which invested an estimated $12.7 million over two rounds (according to data from peHUB publisher Thomson Reuters), holds 5.3 million shares currently worth about $169 million. That gives it a potential multiple of 13.29x. Nice!
• Impact Venture Partners, which invested $12.7 million over two rounds, holds 3.5 million shares presently worth about $112 million for a potential multiple of 8.81x. Also nice!
• And Integral Capital Partners, which invested $9.2 million, holds 1.5 million shares worth an estimated $48 million, for a potential multiple of 5.23x. Pretty good in today’s environment.
Congrats to OpenTable and all of its VCs! And here’s hoping the stock price only goes up from here.
|Value of VCs’ Shares After OpenTable IPO|
|Venture backers||Shares held after IPO||Est. price per share||Est. value of shares||Est. VC invested||Est. multiple|
|Benchmark Capital Partners IV LP||5,290,211||$31.89||$168,704,828.79||$12,690,000.00||13.29|
|Impact Venture Partners||3,503,853||$31.89||$111,737,872.17||$12,690,000.00||8.81|
|Integral Capital Partners V LP||1,503,072||$31.89||$47,932,966.08||$9,170,000.00||5.23|
|Venture Frogs Fund I LLC||74,611||$31.89||$2,379,344.79||$950,000.00||2.50|
|Windspeed Ventures (1)||51,522||$31.89||$1,643,036.58||$9,170,000.00||n/a|
|W Capital Partners I LP||155,285||$31.89||$4,952,038.65||n/a||n/a|
|Sources: SEC filings and Thomson Reuters|
|(1) Windspeed’s total proceeds could potentially be $1.34M.|
|Windspeed is slated to sell 52,000 shares in IPO for estimated proceeds of $676,000.|
|Compiled by Lawrence Aragon, Venture Capital Journal|