So, this might be me just being dumb, but I don't understand how Benchmark has made any money whatsoever on this deal. Not yet.
And what I mean by that is this: they gave Uber money for shares. But they have not yet sold the shares to anybody, b/c no acquisition or IPO. Other investors buy more shares, but that's not a liquidity event, is it?
Benchmark has a whole boatload of paper profits that they can't return to their LPs, not yet at least.
Or am I crossed up here? Could they, or have they, done some kind of private sale? I kind of doubt it but could easily be wrong here. Is there some kind of financial instrument to cash out early I'm ignorant of?
That's why I said value and not actual return on investment. They have created an insane amount of value in the stock that Benchmark owns. If you were an investor would you rather take the money that Benchmark originally invested, or the stock they received for it? Pretty easy answer unless you think they will go bankrupt.
And what I mean by that is this: they gave Uber money for shares. But they have not yet sold the shares to anybody, b/c no acquisition or IPO. Other investors buy more shares, but that's not a liquidity event, is it?
Benchmark has a whole boatload of paper profits that they can't return to their LPs, not yet at least.
Or am I crossed up here? Could they, or have they, done some kind of private sale? I kind of doubt it but could easily be wrong here. Is there some kind of financial instrument to cash out early I'm ignorant of?