The PE Data Center Buzz

Private Company Valuations: Sequoia Capital

Posted by Justin Byers, Lead Business Intelligence Analyst on June 19, 2008

We are wrapping up a great week here at the 2008 BIO International convention in San Diego. We've enjoyed getting to meet some of you that took the time to stop by our booth and take a look at the KIT Database and all that VC Experts has to offer. In this week's Buzz, we are going to take a look at some of the deals from Q1 2008 that Sequoia Capital participated in. Below are the findings from the analysts here at VC Experts.

• We are going to start with Globallogic, Inc. (formerly known as Induslogic, Inc.). This software company headquartered out of Vienna, Virginia, received a total investment amount of approximately $29.5 MM. Of this amount, Sequoia Capital supplied approximately $13.5 MM. Some of the other participants in this round were New Enterprise Associates and New Atlantic Ventures. The Series C shares of this round were conventional convertible and had non-cumulative dividends of 8%. The post-money valuation following this round was $185,871,774.

  
  

• Next we looked at AliphCom, Inc. This is a communications company out of Silicon Valley that closed a round that totaled approximately $30 MM. The shares were conventional convertible and had weighted average anti-dilution protection. Sequoia Capital provided approximately $10 MM to the round. Also participating and providing funding to this round were undisclosed individuals and Khosla Ventures. The team found the post-money valuation after this round to be $197,102,074.

  
  

• How about Dash Navigations, Inc. who is also located in the Silicon Valley region? They provide automotive GPS devices. They received a total of just over $30 MM in Q1 2008. Sequoia Capital participated with approximately $9 MM going to this Series C round. Crescendo Venture Management LLC, Skymoon Ventures, and Zenshin Capital Management were a few others that also participated in this round. The shares were participating preferred with a liquidation preference that was Pari Passu with other preferred shares. This round left a post-money valuation of $174,076,130.

After inputting the data into our Cost of Capital Benchmark tool, we see that AliphCom, Inc. came out with more "company-friendly" capital than Globallogic, Inc or Dash Navigations, 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.

Cost of Capital Benchmark (What's This?)

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