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June 27, 2005
So Just How Much is a MOTU worth to a VC? -- VC Fantasy Life Part II
So Just How Much is a MOTU worth to a VC? It depends.
Bill Burnham has just posted his analysis with detailed links and references to public filings to get a good sense at what two Big Bear VCs (John Doerr and Mike Moritz) at two Grizzley Funds (Kleiner and Sequoia) who backed Google (clearly a MOTU) got out of their respective deals. ( Burnham's Beat: Just How Much Did VCs Pocket On Google? )
Of note: Bill confirms that these two Grizzley funds seem to get a premium carry over the traditional 20% “mere mortal” venture funds get . Both Kleiner and Sequoia seem to get at least 30% — possibly 35% or even 40%. (“CalPERS, where are you?”)
The other point of interest is how skewed the partner split can get — with one or two partners getting the lions share of the carry — leaving a much smaller portion to split among the funds minions. So much for the concept of “partnership”.
This is a good post not only to read — but to follow all the links — as it retraces how to use the public record on the internet to track down financial details of IPO venture exits.
So Just How Much is a MOTU worth to a VC? It depends on the fund, how well that fund has done with its other investments, the individual VCs involved and what deals they have cut among themselves regarding partnership splits, and the style the fund uses to distribute stock to their limited partners.
Thanks Bill for another excellent post.
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