Latest posts by Alexander Jarvis (see all)
- CAP TABLE #14: The preference shares sheets – From Series A to I – of the cap table - November 16, 2017
- CAP TABLE #13: The convertible notes and warrants sheet of the cap table - November 16, 2017
- CAP TABLE #12: The Common sheet of the cap table - November 16, 2017
In 2005, Roelof Botha from Sequoia wrote an investment memo proposing to the investment committee (IC) that they invest in the seed round of a video company. That company was YouTube.
The partners agreed to invest $1 million which was then followed by a $4 million Series A. Google’s acquired YouTube a year later for $1.65 billion, netting Sequoia $500m- 57x its total investment. Not bad.
It would be pretty interesting to read that memo, right?
Out it Comes
During a 2010 court case of Viacom vs. Youtube (Google) case, Roelof had to disclose his investment memorandum as part of his testimony. Yay!
There is a detailed write up about the memo here. I’m not going to do the work when someone smarter than me has already done it ;).
If you want to see the pitch deck and some further information, head over to this blog.
Read it below, you can also download it here.