Monday, July 27, 2009

Zappos Founders Do Well In Sale To Amazon

Last week, Amazon acquired Zappos for roughly $847M. The founders did very well. Via What Everyone Made from the Zappos Sale.
It’s much harder to see how much Hsieh and Lin are making, because no one knows how much of the proceeds of the Venture Frogs shares goes to their pockets or to their LPs. But they clearly did well. Hsieh made at least $214 million; Lin made at least $18 million, with the Venture Frogs shares netting an additional $163 million. If that’s a forced sale, the two are crying all the way to the bank.

Zappos was all about execution. When a founding team executes this well, they certainly deserve the spoils. Many congratulations to them and all the Zappos employees for building a really great company.

Investor Sequoia returned about $160M on their $35M investment. That's a nice cash-on-cash return for them. Congratulations to them for supporting their investment through multiple rounds and helping to build a really great company.

Amazon gets a great asset.

Customers win in the end.

I love seeing these kinds of results for entrepreneurs, investors, employees, and smart acquirers. Congrats to all!

No comments:

Post a Comment