The PE Data Center Buzz

Private Company Valuations: Kleiner Perkins Caufield & Byers

Posted by Justin Byers, Lead Business Intelligence Analyst on June 26, 2008

We are back in the home office for this week's PEDC Buzz. Last week, we looked at Sequoia Capital, this week our analysts take a look at some of the deals of Q1 2008 that Kleiner Perkins Caufield & Byers participated in. Below are the findings:

• We are going to start off with a company that many of you are familiar with, LifeLock, Inc. I am sure you have probably heard or seen some of their advertisements, but did you know that they raised an additional $25 MM in Q1 of 2008? Kleiner Perkins Caufield & Byers contributed approximately $6.25 MM to this Series C round. Also participating in this round were Bessemer Venture Partners and Goldman, Sachs and Company. The preferred stock was Participating Preferred with a 1.5x cap on the participation. The shares also had a Senior liquidation preference to the other series preferred. The Post-Money valuation following this round was $221,756,075.

  
  

• TherOX, Inc. based in Irvine, California, raised just under $30 MM. Kleiner Perkins Caufield & Byers participated in this Later Stage round with approximately $6 MM. Some of the other investors in this round were Integral Capital Partners, New Science Ventures, LLC, and Cross Creek Capital. The shares were Participating Preferred and included non-cumulative dividends of 8%. The team found the Post-Money valuation to be $124,912,408.

  
  

• Corventis, Inc. (formerly Amigo Therapy, Inc.) closed a series B round of $20 MM. Kleiner Perkins Caufield & Byers helped out by contributing approximately $5 MM. The preferred shares were Conventional Convertible with Pari Passu liquidation preference to the other series preferred. Other participants in this round were Mohr Davidow Ventures and Duff Ackerman & Goodrich LLC. The Post-Money valuation was $52,654,125.

  
  

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