This is a well written article on the desirability of transparency on the part of VCs in their investments. Fortunately this seems to be an imperative that is being embraced by and increasing number of private equity firms in the tech sector.
When Instagram was bought by Facebook earlier this spring for $1 billion, one question lingering on everyone’s minds was how much VC firm Andreessen Horowitz made on the deal. The firm had made an early investment in the photo sharing startup but then bet against it after Instagram’s pivot by later by supporting a rival.
A few days after the Facebook-Instagram acquisition was announced, the firm’s partner Ben Horowitz took to his blog to not only reveal the back story of the investment in Instagram, but also how much the firm had made off the deal under the terms of the acquisition—$78 million off of a $250,000 investment
Transparency in the VC world is the new black. From the outside, investing terms look like a black box — in goes the company and out comes a cap table. Dialogue that was previously reserved for closed-door, back-office meetings is now taking…
View original post 763 more words