The PE Data Center Buzz
Private Company Valuations: Web "Widgets"
Posted by Justin Byers, Lead Business Intelligence Analyst on October 02, 2008
People use them everyday to share information, add personality to their social web pages, and do just about anything else you want to do with them. What are they? Widgets…They are popping up everywhere from social networking sites to popular news and media sites. Everyone from Main Street to Wall Street is using them. The VC Experts analyst team has taken a look at a couple of deals from companies that design and produce these widgets.
What are
widgets? Widgets are chunks of code that can be embedded into a website and/or mobile platform. These little chunks of code assist in the displaying of information and also get users to participate in various applications.
Cost of Capital Benchmark
We plugged in the details of each round into our Cost of Capital Benchmark tool, and as you can see, Gigya, Inc. has received the most “company friendly” capital as compared to Widgetbox, Inc.
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.
Widgetbox, Inc. is a company in San Francisco, California that has an online community of web widgets. The company closed a Series B round earlier this year for approximately $8 MM. Some of the participants in this Series B round were Hummer Winblad Venture Partners, Sequoia Capital, and Northgate Capital Group.
The Deal Terms of this round were:
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Type of Preferred – Participating Preferred
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Participation Cap – 3X
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Round Direction - Up
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Dividends –Non-Cumulative @ a rate of 8%
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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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Price Per Share -
$1.46
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The total amount raised following this round was approximately
$8 MM
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VC Experts calculated a Post-Money Valuation of
$61,902,870
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Gigya, Inc. has an office in the U.S in Palo Alto, California. The company allows users to create and distribute content using their proprietary technology. This company also closed a Series B round earlier in the year for approximately $9.5 MM. Firms participating in this round were Benchmark Capital, Mayfield Fund, and First Round Capital.
The Deal Terms of this round were:
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Type of Preferred – Conventional Convertible
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Round Direction - Up
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Dividends –Non-Cumulative at a rate of 6%
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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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Price Per Share -
$4.895084
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The total amount raised following this round was approximately
$9.5 MM
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VC Experts calculated a Post-Money Valuation of
$25,991,692
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