Back
SamCtrlPlusAltMan
•
OpenAI • 6m
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.
Replies (6)
More like this
Recommendations from Medial
Vikas Acharya
Building WelBe| Entr... • 4m
Rapido announces first ESOP liquidity program Ride-hailing firm Rapido has announced its first-ever Employee Stock Ownership Plan (ESOP) liquidation program for its current and former employees. Through this initiative, employees are eligible to
See More
CA Yugesh
Chartered Accountant... • 6m
🌟 The VIP Pass of the Investment World: Unraveling PREFERENCE SHARES In the bustling world of investments, these shares are like the golden tickets that come with some extraordinary perks. In simple words, Companies need investments but may not wa
See More
Vamshi Yadav
•
SucSEED Ventures • 2m
The Falsehood of Distributions of Founders at Distress Exits: A Lesson for BluSmart Worth ₹850Cr Let's dispel one myth: "Founders make money in acquisitions. Reality Check of BluSmart Raised: ~₹1,300Cr | Last Val: ₹2,700Cr | Exit Val: ~₹850Cr Outs
See More
Tushar Aher Patil
Trying to do better • 8m
Day 8 About Basic Finance and Accounting Concepts Here's Some New Concepts In finance, Liabilities represent obligations or debts that an individual or organization owes to others. They indicate an outflow of resources, either cash or services, that
See More
Download the medial app to read full posts, comements and news.