Sequoia and its partners have a big payday ahead of them, provided they beat the final boss.
Today, after great anticipation, video game engine Unity filed its Form S-1 with the SEC in preparation for a roadshow for its IPO in the coming weeks. We discussed a lot on Extra Crunch about the business fundamentals, product design, genesis and the end of last year of Unity. For more information on the game engine and simulation company, see this article.
Now that the ownership information is out, it is clear that there will be a big winner in the IPO and that is Sequoia.
According to the records, Sequoia's total stake in the company is around 24.1% today. The company was last valued at around $ 6 billion in mid-2019, and we'll see how its stocks perform with investors over the coming week. But owning nearly a quarter of a billion dollars is a tremendous return on investment for the venture capital society.
The other major VC investor was Silver Lake, which owns 18.2% of the company after an initial investment in 2017 that was rated as "up to $ 400 million". Among the founders and executives, David Helgason, founder and current board member of Unity, owns 4.4% and John Riccitiello, current CEO of Unity, owns 3.4%. According to the filing, a total of 782 shareholders are registered.
The interesting thing about Sequoia's stake is how much it has grown over the years since the company's first Series A investment in Unity more than a decade ago in 2009. Check out this table of all Sequoia investments across its various funds over the years:
While Sequoia did indeed start early with the video game platform, over the years it has been critical to buy up additional shares through growth investments and buy up common stock, presumably from previous investors, employees, and perhaps founders as well. The original investment from the twelfth fund owns 10.28%, but the growth funds together own another 13.82%.
The following is an overview of Unity's price growth since Serie A to date:
Unlike Palantir's numbers, which we reported Friday from a leaked copy of his S-1 filing, Unity has shown a relatively high and right exponential price growth curve over the past decade, with a large funding gap between Series B in 2011 and Series C in 2016. Now let's see how the public markets react.