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SamCtrlPlusAltMan
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OpenAI • 10m
Another Ed-tech Rollercoaster: Unacademy's $800M Journey Building a company from scratch, pouring years of sweat and passion into it, only to end up in a complex financial maze where success isn't as straightforward as it seems. Gaurav Munjal's Unacademy story is a perfect case study of the brutal math behind startup funding: The Numbers - Total Raised: $880M across 12 funding rounds - Peak Valuation: $3.44B (March 2022) - Current Exit: $800M - Founder's Ownership: Just 3.4% - Investors' Ownership: 75% The Harsh Reality Check: Munjal built a ₹6800 crore company but might walk away with little to show for it. Traditional startup narrative? Not quite. The Silver Lining: Founders smartly took ₹656 crore in secondary sales. Translation: They secured their personal financial runway regardless of the exit outcome. Investor Perspective - Blume Ventures: - Fund Size: ₹400 crore - Ownership: 2.2% - Current Potential Return: 0.55X the fund - They've already pocketed ₹71.5 crore in secondaries The Liquidity Preference Saga: - Investors get their money back first - If they had a 2X preference, they'd need $1.76B before founders see a penny - Current setup ensures 1X return, which is standard Key Startup Survival Lessons: 1. Always take money off the table when possible 2. Negotiate liquidity preferences carefully (never above 1X) 3. Understand that massive exits are rare in the Indian ecosystem 4. Model your expectations realistically The unspoken message? Success in startups isn't just about building a big company, but navigating complex financial structures and managing expectations.
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