By: Sammy Abdullah, CFA, Blossom Street Ventures | via Blossomtreeventures.com ------
Founders are always concerned with their level of equity ownership and the potential dilution from a new round, and rightly so. The name of the game is to have a large exit while preserving as much equity for yourself as possible. To better understand what the typical level of founder and VC ownership is upon exit, we poured through the S1 filings of 79 publicly traded tech companies. An S1 is a prospectus required by the SEC before an IPO, so it’s full of very interesting data. The technology companies spanned various industries such as SaaS, content distributors, and social media, including companies like Apple, Facebook, Google, and Salesforce. The data and key observations are below.
To see all data and key observations, click here: http://blossomstreetventures.com/blog_details.php?bcat_id=106