Super Cities №25 — Growth Guerrillas

Brendan Hart

Softbank finally names a number

SoftBank Group Corp. has told stakeholders in Uber Technologies Inc. that it would initially offer to buy shares at a nearly 30% discount to the company’s most recent valuation of $68 billion, according to a person familiar with the matter.


After months of back and forth, Softbank is offering to buy Uber shares at a $50 billion valuation. We’ll see if Uber shareholders accept a 30% discount on its latest round.

Although I often cringe at Silicon Valley-style “growth” conversations, the math on the big winners — Uber, Facebook, Google, a few others — is incredible.

Benchmark led Uber’s Series A round in 2011. In this and subsequent rounds, Benchmark invested $27 million in Uber. Its stake is now worth $8 billion.

Benchmark a few months ago projected that, within two years, Uber would be worth $100 billion. If the math stays steady, Benchmark’s stake in Uber would be worth ~$13 billion. In eight years, Benchmark’s $27 million investment would be worth ~$13 billion.

For all the headaches-turned-risks — poor leadership, lawsuits, fierce competition — Uber’s early investors have earned enormous returns. And that’s the venture investment bet.

Share
You've successfully subscribed to Super Cities
Welcome back! You've successfully signed in.
Great! You've successfully signed up.
Success! Your account is fully activated, you now have access to all content.