Private Company Valuations: Kleiner Perkins Caufield & Byers

Analysts at PEDC took a look at some of the deals of Q1 2008 that Kleiner Perkins Caufield & Byers participated in.

Below are the findings:

• The first company many of you must be familiar with, LifeLock, Inc. I am sure you have probably heard or seen some of their advertisements, but did you know that they raised an additional $25 MM in Q1 of 2008? Kleiner Perkins Caufield & Byers contributed approximately $6.25 MM to this Series C round. Also participating in this round were Bessemer Venture Partners and Goldman, Sachs and Company. The preferred stock was Participating Preferred with a 1.5x cap on the participation. The shares also had a Senior liquidation preference to the other series preferred. The Post-Money valuation following this round was $221,756,075.

  TherOX, Inc. based in Irvine, California, raised just under $30 MM. Kleiner Perkins Caufield & Byers participated in this Later Stage round with approximately $6 MM. Some of the other investors in this round were Integral Capital Partners, New Science Ventures, LLC, and Cross Creek Capital. The shares were Participating Preferred and included non-cumulative dividends of 8%. The team found the Post-Money valuation to be $124,912,408.

• Corventis, Inc. (formerly Amigo Therapy, Inc.) closed a series B round of $20 MM. Kleiner Perkins Caufield & Byers helped out by contributing approximately $5 MM. The preferred shares were Conventional Convertible with Pari Passu liquidation preference to the other series preferred. Other participants in this round were Mohr Davidow Ventures and Duff Ackerman & Goodrich LLC. The Post-Money valuation was $52,654,125.

  
  

After inputting the data into the Cost of Capital Benchmark tool it is seen that Corventis, Inc. came out with more "company-friendly" capital than LifeLock, Inc. or TherOX, Inc.

Keeping in mind, the lower you are on the chart, the more company-friendly the money, the higher you go on the chart, the more investor-friendly the money. If you are a company raising money, you want be lower on the chart. This is a time when it is not best to be on top if you are the company raising money.

(via PEDC)