The PE Data Center Buzz
Private Company Valuations: Solazyme, Inc.
Posted by Justin Byers, Lead Business Intelligence Analyst on November 13, 2008
The search for a renewable energy source is still on going. There are more and more new companies coming about in search of the best answer for this issue. This week we are going to look at one in particular that received a substantial amount of funding in September 2008.
Solazyme, Inc. is headquartered in San Francisco, California. They have been around since 2003, and use microalgae to create clean and scalable bioproduct solutions for the energy/industrial industry as well as the healthcare industry. One of these products is a renewable energy source. The company received its latest rounds of financing in 2007 and 2008. Some of the participants of these rounds have been Lightspeed Venture Partners, The Roda Group, Harris & Harris Group, and Braemer Energy Ventures.
The Deal Terms of these rounds were:
|
Filing Date
|
05/11/2007
|
|
Round of Financing
|
Series B
|
|
Type of Preferred Stock
|
Conventional Convertible
|
|
Liquidation Preference for the Current Round
|
Pari Passu
|
|
Multiple of the Liquidation Preference: 1x; 2x; 3x; > 3x.
|
0 - 1x
|
|
Round Direction
|
Up Round
|
|
Anti-Dilution Protection
|
Weighted Average
|
|
Cumulative Dividends
|
No
|
|
Dividend Rate
|
8%
|
|
Price per share
|
$1.009
|
|
Total Amount Raised in Round
|
$8.6 MM
|
|
Post-Money Valuation
|
Premium Content
|
|
Filing Date
|
09/29/2008
|
|
Round of Financing
|
Series B
|
|
Type of Preferred Stock
|
Conventional Convertible
|
|
Liquidation Preference for the Current Round
|
Pari Passu
|
|
Multiple of the Liquidation Preference: 1x; 2x; 3x; > 3x.
|
0 - 1x
|
|
Round Direction
|
Up Round
|
|
Anti-Dilution Protection
|
Weighted Average
|
|
Cumulative Dividends
|
No
|
|
Dividend Rate
|
8%
|
|
Price per share
|
$5.03758
|
|
Total Amount Raised in Round
|
$53.9 MM
|
|
Post-Money Valuation
|
Premium Content
|
Valuation Ticker:
How does the “Valuation Ticker” tool work?
The Valuation Ticker is a venture capital valuation tracking tool that utilizes the average daily close prices of public companies in particular industries. Each of these companies received venture capital or private equity funding prior to their IPO. Utilizing averages from 1999 to present, these daily figures are then applied to the most recent post-money valuation of a private, venture-backed company within the same industry, as calculated by VC Experts, to simulate the movement of that company’s valuation on a daily basis. Additional data is utilized as a comparative measure, including the NASDAQ and S&P 500 indexes.
What is different with this tool and other similar tools that are already in use?
Compared to similar tools, the greatest difference of our Valuation Ticker lies with the granularity of our public company selection. Instead of blindly grouping all companies, we break them apart by industry, so that the user is viewing comparable data within the same industry.
We also plugged in the details of each of these rounds from above into our Cost of Capital Benchmark tool to give a graphical view of this cost.
How does the “Cost of Capital Benchmark” tool work?
We have applied a numerical weight to each deal term. Once After applying the weight to the deal terms, we use a proprietary algorithm to calculate a “total” weight of the deal terms in the round. We then show a graphical representation of this weight as it compares to regional averages and other companies. So to keep in simple, the higher you are on the chart, the more “investor friendly” the money. The lower you are on the chart, the more “company friendly” the money. If you are an entrepreneur, you want to be low on the chart. If you are a VC or other investor, you want to be higher on the chart.
Permalink |
Send to Colleague |
Comments
|
