In fact, I think the acquisition would have been in $50 mil range simply because VCs otherwise won't allow the sale. If they raise $2.5 mil at say $5-7.5 mil post money valuation, then for making 10x VCs would only say yes to an offer of $50-75 mil.
VCs may not have had a say - which has become more common, esp after only a single round.
Rackspace don't really do inflated acquisitions - they paid $18M for Slicehost and Jungledisk (combined). Cloudkick raised $2M back in April, so you would think that the price would be more around $15-20M.
Either way, congratulations to the team, RS and to YC. CK is a great product.
Comments
Price anyone?
Based on 2.5 mil they have raised, price would be north of $25-30 mil. Great job for a 2 year old company!
Do you think it's that much with amazon offering a monitoring solution now as well.
Yes, and for free :)
Plus there is always Pingdom, AlertFox, Webmetrics, Keynote...
In fact, I think the acquisition would have been in $50 mil range simply because VCs otherwise won't allow the sale. If they raise $2.5 mil at say $5-7.5 mil post money valuation, then for making 10x VCs would only say yes to an offer of $50-75 mil.
VCs may not have had a say - which has become more common, esp after only a single round.
Rackspace don't really do inflated acquisitions - they paid $18M for Slicehost and Jungledisk (combined). Cloudkick raised $2M back in April, so you would think that the price would be more around $15-20M.
Either way, congratulations to the team, RS and to YC. CK is a great product.
I am going to guess 30m, give or take a few bucks.
Even if VCs target at a 10x sale, they definitely take offers to sell at a much lesser multiple.
They target at 10x so that with their spread of total-failures/so-sos/big-exits they end up making a nice return.