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.
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On November 30, 2006, the company filed for incorporation under the name of Cuill, Inc, authorizing
13,000,000 shares of Common Stock.
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On December 20, 2006, the company filed an Amended and Restated Certificate of Incorporation. The results of this filing were:
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Increased the authorized number of shares of
Common Stock to 18,500,000
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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:
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Type of Preferred – Conventional Convertible
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Dividends – Non-Cumulative at a rate of 8%
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Liquidation Multiple – 1x
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Anti-Dilution Protection – Weighted Average
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Pay-to-Play Provisions – None
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Conversion Rate – 1 to 1 (preferred to common)
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Price Per Share -
$1
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Type of Preferred – Conventional Convertible
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Dividends – Non-Cumulative at a rate of 8%
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Liquidation Multiple – 1x
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Anti-Dilution Protection – Weighted Average
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Pay-to-Play Provisions – None
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Conversion Rate – 1 to 1 (preferred to common)
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Price Per Share -
$1.9615
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The total amount raised following this round was approximately
$8.25 MM
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VC Experts calculated a Post-Money Valuation of
$32,004,676
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Type of Preferred – Conventional Convertible
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Dividends – Non-Cumulative at a rate of 8f%
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Liquidation Multiple – 1x
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Liquidation Preference – Pari Passu with other Series Preferred
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Anti-Dilution Protection – Weighted Average
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Pay-to-Play Provisions – None
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Conversion Rate – 1 to 1 (preferred to common)
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Price Per Share -
$10.55
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The total amount raised following this round was approximately
$25 MM
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VC Experts calculated a Post-Money Valuation of
$200,929,516
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