Why it DOESN’T Suck to Be a VC
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.
21 May 2009•2 mins read
