The last round of funding totalled $300,000 and capitalised the company at >$28m. The round closed on 11 Oct. The current raise of $3.2m is a little under 50% subscribed. What could the company possibly have done in the last 3 months to increase its overall value by >$17m, with roughly $300k in working capital on hand?
Nevertheless, the question goes to the, in my opinion, diminished likelihood of investors receiving an outsized return, which may then be funneled back into other local, early-stage ventures. What is an outsized return? 5x? 10x? More? For a Kandoot investor to realise such a return, the company must be acquired for $255m or $455m respectively. Of course, this is working on the extremely unlikely assumption that the company would take on no further dilutive capital prior to an acquisiton or IPO of that scale. For any startup ecosystem to flourish, investors must receive a return on their investment that is proportinate to the risk they take. Without it, the willingness to invest in such ventures will undoubtedly lesson, and with it, the capital such ventures rely on. -- You received this message because you are subscribed to the Silicon Beach Australia mailing list. Vist http://siliconbeachaustralia.org for more Forum rules 1) No lurkers! It is expected that you introduce yourself. 2) No jobs postings. You can use http://siliconbeachaustralia.org/jobs To post to this group, send email to silicon-beach-australia@googlegroups.com To unsubscribe from this group, send email to silicon-beach-australia+unsubscr...@googlegroups.com For more options, visit this group at http://groups.google.com/group/silicon-beach-australia?hl=en?hl=en
