Pure Storage: The Path to IPO ($PSTG)
Phil Haslett | October 08, 2015
Pure Storage, a flash-storage company backed by venture investors Sutter Hill, Greylock Partners, Index Ventures, and Tiger Global, started trading on the public markets yesterday.
As we've done in the past
, we took a look and visualized how pre-IPO investors did
. We asked a few questions:
- What level of return did early investors generate?
- How did the last private investors do?
- Who are the big winners?
Way to go, Sutter Hill Ventures!
It's a good day to be a limited partner
of Sutter Hill Ventures
. The Palo Alto based venture firm owns 27% of the company, worth $745 million at the $17/share IPO price.
Sutter Hill should be rewarded for its early belief in Pure Storage: they led the company's $5 million Series A funding round 6 years ago, at $0.21/share (good for an 8000% return).
Ho-hum returns for late-stage investors
Assuming that Pure Storage continues to trade at $17/share, the last private investors (Wellington, To Rowe Price, and Tiger Global) will generate an 8% return. While that may sound decent, it probably doesn't justify the risk that those investors saw in the investment when they put over $200 million into Pure Storage's Series F financing in April 2014
We got it right! (Sort of)
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