VC Winnings on Square’s First Trading Day
Square’s pre-IPO investors scored paper returns after the first day of trading, but some are doing better than others.
The biggest winner was Khosla Ventures, whose $30 million stake across three rounds was worth $660 million after closing, filings say. Sequoia’s $15 million Series B-2 investment was worth $206 million, while Kleiner Perkins’ $50 million Series C investment was worth $113 million. These reflect share prices of 22 cents, 95 cents and $5.80 paid in the first three rounds respectively.
Less well positioned is Rizvi Traverse, which bought preferred stock in the last two rounds and common stock in a secondary sale. At Thursday’s close of $13.07, Rizvi’s $178 million investment was up by $33 million (assuming its common stock was bought in the secondary transaction).
Rizvi needs shares to stay above $11.03 to see a profit.