The PE Data Center Buzz

Private Company Valuations: Cuil, Inc.

Posted by Justin Byers, Lead Business Intelligence Analyst on September 11, 2008

Just about everyone has a specific search engine that they always return to for their internet searches. Google and Yahoo being the largest, there are several that are coming into play and are working on giving these companies a run for their money. One of the latest search engines to go live was Cuil. This week the VC Experts analyst team is going to take a look at a couple of rounds of financing that Cuil, Inc. has recently gone through. We have broken down a summary of the latest round below.

Cost of Capital Benchmark

We plugged in the details of each round into our Cost of Capital Benchmark tool, and as you can see, this has been very “company-friendly” capital thus far.

Keep in mind, the lower you are on the chart, the more company-friendly the money, the higher you go on the chart, the more investor-friendly the money. If you are a company raising money, you want be lower on the chart. This is a time when it is not best to be on top if you are the company raising money.

• On November 30, 2006, the company filed for incorporation under the name of Cuill, Inc, authorizing 13,000,000 shares of Common Stock.

• On December 20, 2006, the company filed an Amended and Restated Certificate of Incorporation. The results of this filing were:

  • Increased the authorized number of shares of Common Stock to 18,500,000

  • Authorized a second class of stock to be designated as “Preferred Stock”. The first series of “Preferred Stock” was designated as “Series A Preferred Stock” and consisted of 5,500,000 authorized shares. The deal terms of the “Series A Preferred Stock” were as listed below:

• On March 13, 2007, the company filed another Amended and Restated Certificate of Incorporation. The results of this filing were:

  • Increased the authorized number of shares of Common Stock to 19,500,000

  • Increased the authorized number of “Series A Preferred” shares to 6,500,000

  • Increased the price per share of the “Series A Preferred” shares to $1.9615

  • The deal terms of the “Series A Preferred Stock” were as listed below:

• On December 10, 2007, the company filed another Amended and Restated Certificate of Incorporation. The results of this filing were:

  • Increased the authorized number of shares of Common Stock to 20,991,369

  • Reduced the authorized number of “ Series A Preferred” shares to 4,358,909

  • A second series of preferred stock was created and designated as the “Series B Preferred Stock” and it consisted of 2,488,153 authorized shares. The deal terms of the “Series B Preferred Stock” were as listed below:

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