It took in $2 million from angels like Aydin Senkut, an early Google employee, and startup founder Matt MacInnis in 2013. Large institutions of venture capital are the only losers here "The stake that I bought at the beginning is almost going to be the stake at the end," Ravikant said. What's Notion going to raise? It's going to raise like $100 million total, and of that, $97 million they didn't need but it was on their terms." "That company raised $30 billion over its lifetime. "I was a seed investor in Uber, and I got diluted 10 ways to Sunday," Ravikant said. This strategy would help maintain the value of his stake and give him better returns in the event of an exit. Ravikant said he doesn't expect the startup to raise mountains of venture capital, unlike some of his investments. Notion has raised $70.85 million in total funding, according to PitchBook data. "I don't know of any other company that hit this high of a valuation while raising this little money and being profitable," he said. Notion released a public version of its software suite in 2016 and has been profitable for several years now, Ravikant said. There wasn't a product to demo at his first meeting with Zhao, only pages of notes and sketches in the founder's Moleskin notebook. Ravikant wrote a check into Notion's seed round alongside a few other angels in 2013. "For a seed investor, the return is beautiful," said Naval Ravikant, the cofounder of AngelList. And if it has an exit someday, through a sale or an initial public offering, the shareholder can sell off at a much higher price. The investors that wrote checks into Notion's seed round still own a sizable chunk even after Notion reached unicorn status. The deal terms mean that existing shares are less diluted than is typical at a late stage. "The dilution was very minimal," Zhao told Business Insider on a call last week. They took in $50 million at a valuation of $2 billion, which works out to 2.5% of the startup. Notion's most recent fundraise had very favorable terms for existing shareholders like founders Ivan Zhao and Akshay Kothari. The math works out for early investors in Notion They could see unparalleled returns in the event of a Notion exit. It's also good news for early investors, who put in only a small amount of money for their ownership stake. The startup just raised $50 million in a round led by Index Ventures, which won over the founders by offering its assistance with hiring and strategy before the firm ever put a dollar into the high-flying productivity startup.īut new investors aren't the only ones with reason to celebrate Notion's monster round. The new venture capital flowing into Notion brings an end to a years-long chase for a select group of investors. Visit Business Insider's homepage for more stories.It means that, in the event of a sale or an IPO, early investors in Notion could see unparalleled returns. The existing shares are less diluted than is typical at a late-stage startup.The company sold off only 2% of total ownership. The deal terms were good news for early investors, who put in only a small amount of money for their ownership stake.Notion, a startup that is notoriously shy about taking venture capital, just raised funds at a $2 billion valuation.Account icon An icon in the shape of a person's head and shoulders.
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